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Computerbux

05/27/10 11:02 AM

#14554 RE: madwop26 #14553

The shares they buy back do not become restricted stock (shares), which are different from regular common stock. The company owns the common shares like any person would, except they have the unique ability to "cancel" the shares once they buy them. Typically, if a company does not cancel the shares, they store them in the company treasury and these shares are added to the asset side of the balance sheet instead of the liability side.