Negotiation bonus

The trading premium is a share that is part of Net Equity, and arises when an entity buys its own shares, to avoid serious damage and then sells them again.

The difference (loss of value) between the purchase value and the sale value results in the trading premium. The purchase is made to reduce the capital of the entity, transiently and exceptionally. This operation is supported by article number 220, of the Companies Law.

This account is exposed, in accordance with the Argentine Professional Accounting Standards, as part of the owners' contributions, in the equity.

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