Replies to post #89372 on ProTek Capital Inc (PRPM)

[Bklynboy56]

I'll take that one.:)...

They would have to first be purchased before being retired. That is, unless they are loose shares found during the course of some sort of audit. Whether on the books and not paid for or through some other book keeping screw up, once found they can either be returned to treasury, for possible resale, or retired, altogether.

I'm no regulations Yoda, so if anyone has a better answer, please do edify we, the unwashed masses.:o)


Lou

[jeks108]

not a dumb question. Here is a link with more information on the difference between a stock buy back (company purchasing their own stock) vs. retiring shares.

Information about treasury stock and difference between retiring stock and a company buying their own stock

When a company buys back their own shares this is accounted for by lowering the outstanding shares of a company (shares owned by investors) and raising the number of shares owned by the company (treasury stock).

Companies can turn around and sell their treasury stock later on, give it to officers of the company for incentives, simply hold the stock to help prevent hostile take overs, etc.

A company can choose to retire their treasury shares instead of holding the shares for future use (this removes the chance of these shares finding their way back to the open market and increasing the outstanding shares)

In our case, PRPM management is retiring shares that were issued during the lock, so these shares will not be finding their way back into the outstanding shares.