2021年11月02日
Top 10 Practice Tips: Stock Repurchase Programs
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来源: Lexis Practical Guidance
This practice note includes 10 practice tips that may help you, as counsel to a public company or a repurchase agent, in implementing a stock repurchase program on behalf of your client. A stock repurchase program enables a company to buy back a certain number of its outstanding securities.
In recent years, the repurchase activity undertaken by US public companies has significantly increased, in part as a result of the tax reforms implemented in 2018.
When considering adoption of a share repurchase program, companies should consider the sharp public criticism of such programs, which has become more heightened immediately after the commencement of the COVID-19 pandemic. Nonetheless, share repurchase activity increased substantially in 2021. Many companies that have completed recent significant strategic transactions have concurrently undertaken sizeable share repurchases. Shares repurchased by a company are either canceled or kept as treasury stock, which thereby reduces the number of outstanding shares and usually has the effect of increasing the company’s earnings per share.
Read the complete article here.
In recent years, the repurchase activity undertaken by US public companies has significantly increased, in part as a result of the tax reforms implemented in 2018.
When considering adoption of a share repurchase program, companies should consider the sharp public criticism of such programs, which has become more heightened immediately after the commencement of the COVID-19 pandemic. Nonetheless, share repurchase activity increased substantially in 2021. Many companies that have completed recent significant strategic transactions have concurrently undertaken sizeable share repurchases. Shares repurchased by a company are either canceled or kept as treasury stock, which thereby reduces the number of outstanding shares and usually has the effect of increasing the company’s earnings per share.
Read the complete article here.
