Say a large company bought out a smaller one. Then in a years time the smaller one bought them selves again, how does that work. Do the board gather round and chip in, do they have a constant IOU to the parent company until it’s all been paid, can the original owner pay it back off again?
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It’s basically all about stock in the company. All companies have stock even ones you can’t buy on the stock market. That stock is essentially a percentage of the company. So a smaller company can buy their stock back from the larger company or a company can buy back stock from the public if it’s publicly traded.
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