(1) The purpose of cancellation is as follows:
1, the listed company conducts anti-takeover.
Share repurchase will reduce the number of shares issued by the company, thus reducing the number of shares that the purchaser can buy from the market and reducing the risk of being acquired.
2. Improve the efficiency of capital use.
When the company's disposable cash flow is much higher than the cash flow needed by the company to invest in the project, the company can use the remaining cash flow to buy back some shares, thereby increasing the profit per share, improving the return on net assets and reducing the pressure on the company's profit indicators.
3. Stabilize the company's share price and maintain the company's image.
(2) When the share price of a listed company is low and lower than its intrinsic value, the listed company will buy back shares and cancel them, so as to stabilize the share price, enhance investor confidence and maintain the company image. _________
(3) Repurchase, also known as Compensation_rade, means that one party to a transaction promises to buy a certain number of products produced by the machine, equipment or technology and export them to the other party.
(4) This practice is the basic form of product repurchase. Sometimes, both parties can also purchase other products provided by the importer by the exporter of machinery or equipment through agreement. The repurchase method is relatively simple, which is beneficial to enterprise cost accounting and is widely used. ________
(5) Stock repurchase refers to the behavior of a listed company to buy back a certain number of shares issued by the company from the stock market in cash. After the stock repurchase is completed, the company may cancel the repurchased shares. However, in most cases, the company keeps the repurchased shares as "treasury shares" and still belongs to the issued shares, but does not participate in the calculation and distribution of earnings per share. Treasury shares can be used for other purposes in the future, such as issuing convertible bonds and employee welfare plans. Or sell them when you need money.
(6) Stock cancellation refers to the recovery and destruction of specific stocks by the company. As a result, the number of shares in the company will decrease. The method of stock cancellation, (1) forced cancellation. Regardless of the wishes of shareholders, shareholders are required to provide shares by lottery, and the company returns its share capital and cancels the recovered shares. (2) Cancel at will. After consulting with shareholders and obtaining their consent, the company will recover its own shares and cancel them. (3) paid termination. The cancellation of payment of equivalent funds to shareholders can be divided into two situations: cancellation with company profits and cancellation with company capital. (4) Free cancellation. The cancellation of non-payment of shareholders' funds leads to a decrease in the number of shares, but the company's capital does not decrease.