I've often heard of a corporation purchasing some of its own stock back because they thought that was a good value or price at the time. Can a company theoretically buy ALL of its own stock back? If so, who would own the company, would it be a non-profit organization or a co-op of some sort? Consider if the company basically had little value, such as when assets equals debt.
2006-12-14 07:49:14 · 4 answers · asked by DoItRite 3 in Business & Finance ➔ Other - Business & Finance
A company is owned by all of its stockholders, so if all of the outstanding shares of stock in a company is owned by the company, then it would essentially own itself.
2006-12-14 07:53:26 · answer #1 · answered by jseah114 6 · 0⤊ 0⤋
Yes many small businesses own all their own stock. It is usally a corporation or an LLC. The stock is not usually worth much though in small businesses. Stock is usually more valuable in bigger companies.
2006-12-14 07:54:46 · answer #2 · answered by curiosity 4 · 0⤊ 1⤋
A company owning all of its stock would be a private company.
2006-12-14 07:52:33 · answer #3 · answered by Anonymous · 0⤊ 1⤋
It would just be a privately owned company again. One person or a a small nuimber of people could own the shares. They just wouldnt trade publicly. It could still be incorporated.
2006-12-14 07:54:16 · answer #4 · answered by jeff410 7 · 0⤊ 1⤋