Replies to post #212697 on On4 Communications Inc (ONCI)

[ApollyonZ]

Onci! ..Outstanding shares is the sum of all shares of a company held by investors including restricted shares owned by company officers and institutional investors

https://www.upcounsel.com/outstanding-shares

..In turn, the share count is permanently reduced, which causes the remaining shares present in circulation to represent a larger percentage of shareholders’ ownership, including dividends and profits.

..For improving financial ratios..the improvement of financial ratios may just be an after-effect of such good management decisions. This results in an increase in the return on assets (ROA) ratio and return on equity (ROE) ratio. This then illustrates positive company market performance.

Undervaluation..will usually boost the share price and benefit the remaining shareholders.

https://corporatefinanceinstitute.com/resources/knowledge/finance/treasury-stock/

The reduction principle (although not repurchased) increases share holder value as the books are polished and positively effecting financial ratios. The third benefit and reason for reducing the OS or AS is for a company currently facing undervaluation.

$Onci