share buyback
Company buys itself
A share buyback is when a company purchases its own stock from shareholders, reducing the number of shares available on the open market.
Companies do this to return value to shareholders, boost earnings per share, or signal confidence in their financial health.
The repurchased shares may be retired or held as treasury stock for future use.
The tech giant announced a $10 billion share buyback program.
Also called a stock repurchase.
- treasury stockShares repurchased by issuer
- insider trading lawsProhibitions on exploiting nonpublic information
- market capitalizationAggregate equity value outstanding
- capital allocationDistributing funds among investments
- financial engineeringDesigning novel monetary instruments
open market purchase · trading volume · retained earnings · tax implications · financial leverage · executive compensation · short selling · cost of capital · free cash flow · fiduciary duty · volatility · proxy voting · institutional investors · income inequality · asset bubbles · economic growth · consumer spending · monetary policy
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- governancegovernance, government, democracy, vote, parliament
- stock ownershipstock, stockholder, equity stake, majority stake, minority stake
- corporate dealsmerger, acquisition, takeover, buyout, divestiture
- divestituresdivestiture, divestment, sell-off, disposal, spin-off
- restructuringrestructuring, reorganization, consolidation, turnaround, Chapter 11
share buybackcapital expenditure
Spending on fixed assets
acquisition · reinvestment · debt repayment · cash hoarding · business expansion
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