What is the process for repurchasing corporate stock?

When a corporation wishes to repurchase its own stock, it must follow a specific process in accordance with South Carolina law. First, the board of directors must approve the repurchase and authorize the issuance of a certain number of shares. The corporation then posts a notice of the repurchase and the exact number of shares to be repurchased. Next, the corporation must determine how it will finance the stock repurchase. This can be done by using corporate funds or through borrowing money. The board of directors must also set the price at which the stock will be repurchased. Once the financing and pricing have been determined, the corporation must typically prepare a tender offer document and file it with the South Carolina Secretary of State and the United States Securities and Exchange Commission (SEC). The tender offer document outlines the details of the repurchase, including the price, the number of shares, and the terms of the offer. The corporation then distributes the tender offer document and announces the repurchase to shareholders. Shareholders can choose to accept the offer or reject it. If shareholders accept the offer, their shares are repurchased by the corporation for the established price. This process is repeated until the desired number of shares have been repurchased.

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What is the process for repurchasing corporate stock?

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