I’m evaluating a health care company. It has 1000 shares of stock outstanding, but the company holds them all as treasury stock. Can anyone explain this capital structure? They are a ‘public’ company, but all shares are treasury stock.
For what it is worth, I found the answer. The company issues debt, which demands it to be SOX Compliant.
Thats a pretty interesing question, QJ. Mind posting up the link where you found yuor answer? I would assume that since they have issued equity they would have had to have issued debt before that.
Yes please do elaborate. How does ALL the equity of a public company ends up not being traded ? Was there an IPO at some point but the Company bought back all its share or something ? Or maybe by public you mean that they issued public debt but their equity was always non public ?
Viceroy Wrote: ------------------------------------------------------- > Yes please do elaborate. > > How does ALL the equity of a public company ends > up not being traded ? > Was there an IPO at some point but the Company > bought back all its share or something ? > Or maybe by public you mean that they issued > public debt but their equity was always non public > ? The company was publicly traded, then the company bought all the outstanding shares via tender offer. As I read through the financial statements, I was befuddled as to why this company is public when it need not be. Upon digging further, the company issues publicly traded debt. This demands the company to be registered with the SEC and file audited SOX compliant financial statements.