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To: DMaA who wrote (314496)11/3/2021 5:16:13 PM
From: Thehammer  Read Replies (1) | Respond to of 456399
 
You have to understand that the situation is dynamic and not static. When a company buys shares, I think those shares become treasury shares. Some sellers are more motivated than others. If the shares were being bought up by the company (which as to be disclosed), some would sell and some would hold. As the shares become more scarce, the price would rise. You have to look at the effect on the balance sheet as well.

almost sounds like a calculus problem as the share count approaches zero.



To: DMaA who wrote (314496)11/3/2021 11:39:22 PM
From: kckip1 Recommendation

Recommended By
Honey_Bee

  Respond to of 456399
 
investopedia.com

Looks to me like mgmt offers a price to shareholders, buys all the stock, and company becomes private again.

By
CALEB SILVER

Fact checked by
MICHAEL LOGAN

Reviewed by
AMY DRURY


on April 30, 2021

A private company typically goes public by conducting an initial public offering (IPO) for its shares. However, the reverse may also occur. A public company can transition to private ownership when a buyer acquires the majority of it shares.

This public-to-private transaction effectively takes the company private by de-listing its shares from a public stock exchange. While companies may be privatized for a number of reasons, this event often occurs when a company is substantially undervalued in the public market.