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Nasdaq Stockholders’ Equity
 3 Months Ended
Mar. 31, 2017
Equity [Abstract]  
Nasdaq Stockholders' Equity
Nasdaq Stockholders’ Equity
Common Stock
At March 31, 2017, 300,000,000 shares of our common stock were authorized, 169,760,142 shares were issued and 165,168,584 shares were outstanding. The holders of common stock are entitled to one vote per share, except that our certificate of incorporation limits the ability of any person to vote in excess of 5.0% of the then-outstanding shares of Nasdaq common stock.
Common Stock in Treasury, at Cost
We account for the purchase of treasury stock under the cost method with the shares of stock repurchased reflected as a reduction to Nasdaq stockholders’ equity and included in common stock in treasury, at cost in the Condensed Consolidated Balance Sheets. Shares repurchased under our share repurchase program are currently retired and cancelled. When treasury shares are reissued, they are recorded at the average cost of the treasury shares acquired. We held 4,591,558 shares of common stock in treasury as of March 31, 2017 and 3,921,718 shares as of December 31, 2016, most of which are related to shares of our common stock repurchased for the settlement of employee tax withholding obligations arising from the vesting of restricted stock.
Share Repurchase Program
In the fourth quarter of 2014, our board of directors authorized the repurchase of up to $500 million of our outstanding common stock and in the first quarter of 2016, our board of directors authorized the repurchase of an additional $370 million of our outstanding common stock under our share repurchase program.
These purchases may be made from time to time at prevailing market prices in open market purchases, privately-negotiated transactions, block purchase techniques or otherwise, as determined by our management. The purchases are primarily funded from existing cash balances. The share repurchase program may be suspended, modified or discontinued at any time.
The following table summarizes our share repurchase activity:
 
 
Three Months Ended March 31,
 
 
2017
 
2016
Number of shares of common stock repurchased
 
2,215,755

 
490,032

Average price paid per share
 
$
70.64

 
$
59.37

Total purchase price (in millions)
 
$
156

 
$
29


As discussed above in “Common Stock in Treasury, at Cost,” shares repurchased under our share repurchase program are currently retired and cancelled. As of March 31, 2017, the remaining amount authorized for share repurchases under the program was $273 million.

Other Repurchases of Common Stock
For the quarter ended March 31, 2017, we repurchased 668,038 shares of our common stock in settlement of employee tax withholding obligations arising from the vesting of restricted stock.

Preferred Stock
Our certificate of incorporation authorizes the issuance of 30,000,000 shares of preferred stock, par value $0.01 per share, issuable from time to time in one or more series. At March 31, 2017 and December 31, 2016, no shares of preferred stock were issued or outstanding.  
* * * * * *
Cash Dividends on Common Stock
During the three months ended March 31, 2017, our board of directors declared the following cash dividends:
Declaration Date
 
Dividend Per
Common Share
 
Record Date
 
Total Amount Paid
 
Payment Date
 
 
 
 
 
 
(in millions)
 
 
January 30, 2017
 
$
0.32

 
March 17, 2017
 
$
53

 
March 31, 2017

The total amount paid of $53 million was recorded in retained earnings in the Condensed Consolidated Balance Sheets at March 31, 2017.
In April 2017, the board of directors declared a regular quarterly cash dividend of $0.38 per share on our outstanding common stock which reflects a 19.0% increase from our prior quarterly cash dividend of $0.32. The dividend is payable on June 30, 2017 to shareholders of record at the close of business on June 16, 2017. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the board of directors.
In April 2017, our board of directors adopted a dividend policy with the intention to provide shareholders with regular and growing dividends over the long term as earnings and cash flow grow.