Share Buyback

A share buyback, also known as a stock repurchase, is a financial strategy where a company repurchases its own outstanding shares from the stock market. This action can reduce the number of shares available, thereby increasing the ownership percentage of remaining shareholders. Companies may engage in share buybacks for various reasons, including to return capital to shareholders, to enhance earnings per share (EPS), as an investment alternative, or to signal confidence in the company’s future prospects. The buyback can also help support the stock’s price by demonstrating demand. Share buybacks can be executed through open market purchases, tender offers, or private negotiations.