HAON. I am confused again, I know, I am stupid. But I would like to learn if the information provided can explained/rationalized at the low level of understanding I possess.
So, in response to your post, if a company buys shares they now actually have two stacks of A/S. Ones they bought and ones they have not issued yet. Nothing automatic to it, right, when they buy shares it does not lower the O/S until they terminate them (Stupid me thought that when a company buys shares, they are no longer for sale on the market and therefore directly reduce the O/S).
While the company buys and does not terminate them (Again, stupid me thought the termination was a given as soon as they bought them), HAON hoards those shares until they decide to terminate them (building up their stack of buy back shares) all at once. Right?
When terminated, does the A/S reflect a reduction based on the removal of the terminated shares (i.e., HAON terminates their stack of buy back shares, totaling 500M, the A/S is reduced to 10.5B)?
I am aware that an investor, an actual holder of purchased or company provided shares, can terminate his personal shares. A legal process. Something similar to having a wash for tax purposes except this is actual removal of physical shares from the O/S. Whereas a wash simply has you selling off unwanted shares for a tax loss ($0.0 if you want them off your account but can't sell them)...they actually remain in the O/S and are really only terminated when the company goes defunct, the investors terminated shares, however, are actually removed from the O/S...the company's A/S remains the same. At least I thought so.
Also, I actually am so dumb that I never noticed that companies own their own stock (on the books). I am assuming that the information provided is a general rule applicable to all companies and not just HAON. So I remain a bit confused on where these shares they bought back are accounted for on the books while they wait to be terminated.
I hope your response back clarifies this matter.
