Can companies buy their own stock and sell it? and Stock Texture

Can companies buy their own stock and sell it?

Not as in stock buybacks and later issuing new shares, but consider the example of a company stock temporarily dropping to $ 10 on bad news. The leadership at the company recognizes this as a discrepancy and authorizes their company to use its own cash to buy massive amounts of the stock. One year later, the stock is trading at $ 50 and then company can then sell the stock for large profits. Is this allowed?


Stock best answer:

Answer by Raysor
Companies can buy stock in two different ways. For cancellation of stock cannot be re-sold in the market and the proceeds may be distributed to shareholders as repayment of capital or as dividends. Otherwise the stock is bought and put into a 'treasury' account. These shares can be sold back to the market. Treasury stock does not receive dividends. Best to read the Wiki articles on buy backs and treasury stock

Stock

Stock Texture


Image by rubyblossom.
****Please feel free to use this Texture in your Artwork, if you do use it i would love it if you would please post your work in my group here****
www.flickr.com/groups/1296873@N23/
Thank you ***

Do not re-distribute in ANY WAY ~

Brushes by~
pinkonhead.com/

---

Orignal From: Can companies buy their own stock and sell it? and Stock Texture