SOME ASPECTS OF REACQUIRED STOCK, 1931-1933.

The article discusses a survey that was conducted between 1931 to 1933 in the United States to determine the extent and importance of the corporate practice of stock repurchasing. The motives for corporate repurchasing of common and preferred stock are examined, as well as the financial incentives for such purchases. The renewed interest in the repurchase of securities for investment purposes during the U.S. economic depression is detailed. Steps taken by the U.S. Treasury Department and the Federal Trade Commission to regulate the inflation of corporate profits stemming from stock repurchasing are discussed.