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What does a company do with the stock it buys back? Does the company get to keep the dividends on that stock or doesn't stock that is repurchased get to participate in dividends? What is to keep a company from buying back all its stock so that it doesn't have to report to the stockholders?

One common use for stock buybacks is to maintain an adequate pool for employee stock options. Another use might be for acquisitions, using the stock-swap purchase method instead of cash. I believe dividends are paid out on outstanding stock only.

As for buying up all its stock, this actually has been done by public companies wanting to take their company private again. It's not very common however, and would take an enormous amount of capital. I'm sure there are all kinds of regulations governing a public company's decision to become privately-held, not the least of which would be the SEC's interest in seeing that shareholders are adequately compensated for surrendering their stock.

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