Why is it when you check the news, you expect things to be BAD? Tragedy. Disaster. Justin Bieber. It's overwhelming. Where is the good in news? Stories that make us think more, feel more, laugh more. We know, we know – that sounds like something a prescription drug promises. But those are the stories we want to see! That's why we started The Daily Share.
Runtime: 120 minutes
The Daily Share - Share repurchase - Netflix
Share repurchase (or stock buyback) is the re-acquisition by a company of its own stock. It represents a more flexible way (relative to dividends) of returning money to shareholders. In most countries, a corporation can repurchase its own stock by distributing cash to existing shareholders in exchange for a fraction of the company's outstanding equity; that is, cash is exchanged for a reduction in the number of shares outstanding. The company either retires the repurchased shares or keeps them as treasury stock, available for re-issuance. Under U.S. corporate law there are five primary methods of stock repurchase: open market, private negotiations, repurchase “put” rights and two variants of self-tender repurchase: a fixed price tender offer and a Dutch auction. More than 95% of the buyback programs worldwide are through an open-market method, whereby the company announces the buyback program, and then repurchases shares in the open market (stock exchange). In the late 20th and early 21st centuries, there was a sharp rise in the volume of share repurchases in the United States: US$5 billion in 1980 rose to US$349 billion in 2005. Large share repurchases started later in Europe than in the United States, but are nowadays a common practice around the world. It is relatively easy for insiders to capture insider-trading like gains through the use of “open market repurchases”. Such transactions are legal and generally encouraged by regulators through safe-harbours against insider trading liability. U.S. Securities and Exchange Commission (SEC) rule 10b-18 sets requirements for stock repurchase in the United States.
The Daily Share - Other types - Netflix
A company may also buy back shares held by or for employees or salaried directors of the company or a related company. This type of buyback, referred to as an “employee share scheme buyback”, requires an ordinary resolution. A listed company may also buy back its shares in on-market trading on the stock exchange, following the passing of an ordinary resolution if over the 10/12 limit. The stock exchange's rules apply to “on-market buybacks”. A listed company may also buy unmarketable parcels of shares from shareholders (called a “minimum holding buyback”). This does not require a resolution but the purchased shares must still be canceled.
The Daily Share - References - Netflix