Corporate Accounting

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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1CORPORATE ACCOUNTING
Table of Contents
Introduction................................................................................................................. 2
Discussion...................................................................................................................3
Conclusion.................................................................................................................. 6
Reference:...................................................................................................................7

2CORPORATE ACCOUNTING
Part A
Introduction
Buy back is a process that gives the company a right to purchase its shares
back from the shareholders. The outstanding shares gets reduced at the time
company buy backs the shares. This lead to increment of shareholding in case of
remaining shareholder. The entity provide an offer with an option so that the
shareholders can tender their part of shares in a specified time frame as well as
price. The price could be premium or current market price. This price recompenses
the stockholders for proffering their shares slightly than allotment on to them.
Occasionally, companies buy back shares on the exposed market over a prolonged
era of period.