Where to find shares repurchased

Investors should also proceed carefully if the buyback appears motivated by management's desire to improve its valuation metrics or put another way, to manipulate them.

A company that uses buybacks to create the appearance of quick growth in earnings per share, for instance, may not be a company worth owning. As with many things in investing, the answer isn't clear-cut. If the company genuinely has cash to spare, and its shares are arguably undervalued, then a buyback can be a good way to generate benefits for shareholders. But if its shares are expensive, it's worth asking why the company isn't choosing to pay a special dividend to its shareholders instead -- or hanging on to the cash for a rainy day.

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Credit Cards. About Us. Who Is the Motley Fool? Fool Podcasts. The company may not provide price quotations prior to the beginning of trading hours, and shall appoint not more than two securities brokers to execute the repurchase. A company repurchasing its own shares shall not be subject to the restriction regarding the number of shares repurchased specified in the preceding paragraph where the number of shares repurchased is not more than , shares per day.

For a company repurchasing its own shares for reasons specified in Article , paragraph 1, subparagraphs 1 through 3 of the Securities and Exchange Act, the total monetary amount of shares repurchased shall not exceed the retained earnings plus the following realized capital gains: 1.

The term "retained earnings" as used in the preceding paragraph includes legal reserve, special reserve, and undistributed earnings.

However, the following items shall be excluded: 1. Earnings distributed through resolution of a meeting of the board of directors or a meeting of the shareholders. Special reserve set aside by the company pursuant to Article 41, paragraph 1 of the Securities and Exchange Act.

However, special reserve set aside pursuant to Article 14, paragraph 1 of the Regulations Governing Securities Firms shall not be subject to this restriction.

Calculation of the dollar amount of shares that may be repurchased shall be based on financial reports for the latest accounting period prior to a resolution of a meeting of the board of directors. The financial reports must have been audited or reviewed in a lawful and transparent manner by a certified public accountant, and must have been issued an audit report or review report with an unqualified opinion or an unqualified opinion with modified wording.

However, this shall not apply with respect to an interim financial report for which the CPA has issued a qualified opinion because equity-method investment and the share of the profit or loss of associates and joint ventures accounted for using the equity method was calculated based on financial reports of the invested company that were not audited or reviewed by a certified public accountant.

Except as otherwise provided for in these Regulations, a company repurchasing its own shares shall execute the repurchase via the automated computer trading system of a centralized securities exchange market or an over-the-counter automated trade matching system, and may not execute the repurchase by means of block trading, odd-lot trading, tender offer, auction, after-market fixed-price trading, or negotiated transaction at the place of business of a securities firm.

A company which, under the circumstances described in Article , paragraph 1, subparagraph 1 of the Securities and Exchange Act, repurchases its own shares for the purpose of transferring them to its employees, shall first adopt Rules for Transfer of Shares. At least the below listed matters shall be recorded in the Rules for Transfer of Shares referred to in the preceding paragraph: 1. Type of shares to be transferred, a description of the rights attaching thereto, and any restrictions on such rights.

Transfer period. Eligibility requirements for transferees. Procedures for transfer of shares. Agreed transfer price per share.

The price may not be less than the average actual share repurchase price, unless, prior to transfer, the number of the company's issued common shares increases in which case a price adjustment commensurate with the ratio of the increase in issued shares is allowed , or the company is allowed under the provisions of Article to transfer shares to employees at less than the average actual share repurchase price. Rights and obligations subsequent to execution of the transfer. Other rights and obligations related to the company and its employees.

Also, a share repurchase can give investors the impression that the corporation does not have other profitable opportunities for growth, which is an issue for growth investors looking for revenue and profit increases.

A corporation is not obligated to repurchase shares due to changes in the marketplace or economy. Repurchasing shares puts a business in a precarious situation if the economy takes a downturn or the corporation faces financial obligations that it cannot meet. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content.

Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. What Is a Share Repurchase? Key Takeaways A share repurchase, or buyback, is a decision by a company to buy back its own shares from the marketplace.

A company might buy back its shares to boost the value of the stock and to improve the financial statements. Companies tend to repurchase shares when they have cash on hand and the stock market is on an upswing.