SK Hynix Inc.’s (NASDAQ:SKHY) continued its upward momentum from Wednesday. The rally follows the South Korean memory chipmaker’s announcement of plans to buy back and cancel 40 trillion won ($29 billion) worth of its treasury stock.
The Nasdaq is down 0.65% while the S&P 500 has shed 0.43% and Technology is slipping 0.12%.
• SK Hynix stock is among today’s top performers. Why is SKHY stock surging?
Mechanics of Share Cancellations
Treasury shares represent equity stock that a company repurchases from open market shareholders and holds in its treasury. When SK Hynix repurchases and permanently cancels these shares between Thursday and Nov. 19, the reduced share supply automatically elevates earnings per share and increases proportional ownership for existing investors.
