Stock Buyback/Repurchase



Next video:
Loading the player...

A stock buyback, or repurchase, occurs when a company buys its own shares off the market and therefore reduces the amount of stock outstanding.

It can do this in one of two ways: The company can either buy shares at current market prices or tender a fixed-price offer to current shareholders.

The primary benefit of a buyback is the price appreciation investors usually see after the transaction. When the supply of stock available to the general market suddenly becomes smaller, each share is worth more.

comments powered by Disqus
Related Articles
  1. Strategic Management
    Term

    Strategic Management

  2. Performance Management
    Term

    Performance Management

  3. Social Enterprise
    Term

    Social Enterprise

  4. LLC Operating Agreement
    Term

    LLC Operating Agreement

  5. Succession Planning
    Term

    Succession Planning

  6. PT (Perseroan Terbatas)
    Term

    PT (Perseroan Terbatas)

  7. Ltd. (Limited)
    Term

    Ltd. (Limited)

Trading Center