Updating Issuer Repurchase Safe Harbor

Law360, New York (February 24, 2010, 6:16 PM EST) -- There are a number of legitimate reasons for an issuer of publicly traded equity securities to repurchase those securities. Issuers may, for example, believe that a stock repurchase program is preferable to paying dividends as a way to return investor capital; or issuers may desire to have additional shares available for employee stock ownership plans.

Alternatively, issuers may choose to reduce their outstanding capital stock after selling an operating division or subsidiary for cash. Investors may also benefit from issuer repurchases in the form of additional...
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