If a corporation owns 100% of its own stock, what happens?

Nell Dipiero: If by corporation you mean the management running the corporation, then it is possible that a corporation may own all of its stock, and management will be motivated to work towards a profit.But if by corporation you mean the entity owns the stock, then I don't think that is possible in theory. Because a corporation needs to be controlled by someone. think of it like this... can there be a restaurant without an owner. Someone (a person) must hold all of the shares, or some shares outstanding even if it is one share worth $100,000....Show more

Lauri Ohl: The stock could not be traded if the corporation owned all of it. In fact, that is impossible. Someone or some other corporation must own the stock.

Luana Carothers: By corporation I mean the entity. Since a corporation is a legal entity, it should be theoretically possible if not practical.