Desde Investopedia

TERM OF THE DAY

Buyback A buyback, also known as a repurchase, is the purchase by a company of its outstanding shares that reduces the number of its shares on the open market. Companies buy back shares for a number of reasons, such as to increase the value of shares still available by reducing the supply of them or eliminate any threats by shareholders who may be looking for a controlling stake.

Breaking it Down: A buyback allows companies to invest in themselves. By reducing the number of shares outstanding on the market, buybacks increase the proportion of... Read More