For Physical Shares – The company destroys the physical share certificates and updates its records. For Demat Shares – The shares are debited from the shareholder’s demat account and marked…

No, once shares are extinguished, they cease to exist. However, a company may issue new shares separately through fresh allotment, rights issues, or bonus issues.

Generally, share extinguishment (especially due to buybacks) may positively impact stock prices as: Fewer shares in circulation can lead to higher Earnings Per Share (EPS). It signals confidence from management…