Company purchasing shares question
"Peter Saxton" wrote in message
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On Sat, 6 Feb 2010 19:46:59 -0000, "Fredxx" wrote:
"Anthony R. Gold" wrote in message
. ..
On Sat, 6 Feb 2010 16:05:43 -0000, "Fredxx" wrote:
I'm looking at a company who owes me some money and I'm trying to
ascertain
it's liquidity.
When a company purchases shares from one of it's shareholders, would
the
valuation of the company's assets increase in line with the purchase?
Or
would I expect them to stay the same?
It would cause a decrease in assets (cash) with no change in
liabilities.
In this case the company assets have stayed nominally the same, but the
shareholder's funds have decreased by a similar amount, which of course
may
reflect the business itself.
Tony
Net Assets are the same figure as shareholder's funds, and these have been
reduced by the corresponding purchase of shares.
Is this a good wheeze to make use of your capital allowance?
What do you mean by capital allowance?
I meant personal capital gains tax allowance.
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