business and finance question

Anonymous
timer Asked: Jul 23rd, 2014
account_balance_wallet $5

Question Description

Why do corporations buy back their own stock? What is this stock called? How does the company record this type of stock, and how is it shown on the balance sheet?

Tutor Answer

Gabriel E
School: Purdue University

Companies buy their own stock sometimes to because it may be used for employee incentive programs, and future merger with other companies. Companies usually record it on the balance sheet and company statements showing its debits and credits wit the amount of the balance and each transaction. Usually a stock is called a "Common Stock" which is bought back by the issuing company. This may also be called a treasury stock because when it is bought back it serves as an investment for that company by the end of the day.

flag Report DMCA
Review

Anonymous
awesome work thanks

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors