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To: Walt Corey who wrote (42727)5/17/1998 5:09:00 PM
From: Lucretius  Read Replies (1) | Respond to of 176387
 
It becomes treasury stock and does not go into the EPS calculation.



To: Walt Corey who wrote (42727)5/17/1998 5:22:00 PM
From: Chuzzlewit  Respond to of 176387
 
Walt, you asked LT, doesn't bought-back stock still count as outstanding shares?

The answer is no. But when shares are repurchased they go into treasury as a debit. When a company issues shares it doesn't issue them from treasury (i.e. repurchased shares). Shares outstanding represents the actual number in the hands of investors. So if a company repurchases shares the shares outstanding will drop.

TTFN,
CTC


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