Go to Jeff Salisbury LWGate Home Page.From: snarasim@genre.com
Subject: Re: Stock Question
Date: Mon, 1 Feb 1999 14:01:37 -0500
Previous Article (by Author): Income Tax Consequences of Exercised Options "Roberta Kleinman"
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"Asia Properties, Inc announced today that the Company has retired 1.4
million shares of its founders' stock into API's treasury.
The Company has 5,850,600 shares outstanding, following the retirement of
the founders' shares. This represents an accretion of 19.30 percent for
existing shareholders."
What does it mean when they retire shares of founders' stock into its
treasury?
What does an "accretion of 19.30%" mean and how does it affect the stock
people buy?
Again, I'm new to following individual stocks and am trying to educate
myself. Thanks a lot for your help and patience.
Retiring stock means these were in the treasury of the company. Which means
they were NOT outstanding. All this means is that there will be NO
effect on the stocks outstanding. i.e., they are NOT included in
the 5,850,000 shares outstanding. Consequently there will (read:
should) be NO effect on the stock price.
Further, it means the company will NOT have these stocks available for
stock option or other company related purposes. It also means these
stocks will NOT be available for any stock splits that may happen
in the future.
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