Comment Re:Company owning itself (Score 4, Informative) 521
Yes, the shares are "extinguished." So all the remaining shareholders now own a larger percentage share of the company, because there are fewer shares in existence. I just sold a bunch of shares back to a company... it was somewhat handy because they gave preference to odd lots (had 84 shares) so it helps to "clean things up" a bit. Also, they paid above the market rate (which didn't quite jump to the buyback value because they did not buy an unlimited number).