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LSDefine
Simple English definitions for legal terms
reacquired stock
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A quick definition of reacquired stock:
Reacquired stock is when a company buys back its own stock that was previously sold to investors. This stock is also called treasury stock. The company can either cancel the stock or hold onto it. This is different from outstanding stock, which is stock that is still held by investors and has not been bought back by the company.A more thorough explanation:
Reacquired stock is a type of stock that a company has issued but then bought back. This stock can either be canceled or held by the company. It is also known as treasury stock.
For example, if a company issues 100 shares of stock and then buys back 20 of those shares, those 20 shares are considered reacquired stock. The company can either cancel those shares or hold onto them for future use.
Reacquired stock is often used by companies to increase the value of their remaining shares by reducing the number of outstanding shares. It can also be used to provide additional shares for employee stock option plans or to make acquisitions.