Third: many countries that already legitimized the share repurchasing activities are deregulating, and relaxing conditions and rules to encourage corporations using repurchases as an alternative to dividends, as well as, to serve other purposes including improving of stock prices.
While considered as illegal by many other countries, the general known methods of share repurchasing are: repurchase from open market, Dutch auction, fixed price tender offer repurchases, repurchase from off market and equal access repurchases.
The open market repurchase is the most significant method of share repurchasing in US markets as well as other countries.
Instead, they find that large, dividend-paying firms are repurchasing stock rather than increasing dividends and that much of the growth in popularity of share repurchases is due to large, dividend-paying firms.
The relative percentages in each of the three categories is relatively stable, except in the earliest part of the sample when many firms are repurchasing shares for the first time.
Together, these results imply that the
repurchasing firms are effectively closing the gap between their EPS growth rates and those of industry peers that aren't buying back stock.
First, the acquiring company is not restricted to
repurchasing a small percentage of its stock, but can repurchase the number of shares issued in the reorganization.
NEW YORK: The board of directors of New Mountain Finance Corporation authorized an extension of a program for the purpose of
repurchasing up to $50 million worth of its common stock, to be implemented at the discretion of NMFC's management team.
Shares may be repurchased in open market or private transactions, and the repurchase programme may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of
repurchasing shares, 0r liquidity, among others.
Perignon, "Repurchasing shares as a second trading line," Working Paper, Simon Fraser University, 2005.
Marks, "The stock market performance of firms repurchasing their own shares," The Bulletin, vol.
In connection with the additional stock repurchase plan, the Company's Board of Directors also adopted a pre-arranged stock trading plan for the purpose of
repurchasing shares of the Company's common stock in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934.
