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What are Forfeited Shares and How are They Reissued?
When you buy shares from a company but fail to meet or neglect their purchase agreement, your shares could be forfeited. Once forfeited, you would no longer be considered the owner of the shares.
Forfeiture of shares mostly occurs when shareholders fail to pay the call money or the instalment amount to the share-issuing company. Another reason for share forfeiture could be employees having Employee Stock Ownership Plan (ESOP) quitting the company before the vesting period.
Once your shares are forfeited, you won’t be earning capital gains or dividends. However, the balance amount you owe to the issuing company would be revoked upon forfeiture of shares.
What are Forfeited Shares and How are They Reissued?
When you buy shares from a company but fail to meet or neglect their purchase agreement, your shares could be forfeited. Once forfeited, you would no longer be considered the owner of the shares.
Forfeiture of shares mostly occurs when shareholders fail to pay the call money or the instalment amount to the share-issuing company. Another reason for share forfeiture could be employees having Employee Stock Ownership Plan (ESOP) quitting the company before the vesting period.
Once your shares are forfeited, you won’t be earning capital gains or dividends. However, the balance amount you owe to the issuing company would be revoked upon forfeiture of shares.