Stock Buyback/Repurchase

Next video:
Short Squeeze
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.

You May Also Like

Related Articles
  1. Investing Basics

    How To Calculate Goodwill

  2. Term

    Protected Cell Company (PCC)

  3. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

  4. Investing Basics

    The Basics Of Value Chain Analysis

  5. Investing Basics

    Top Tools for ERP Enterprise Resource Planning

  6. Investing Basics

    Analysis of Companies with high goodwill

  7. Investing News

    Starbucks As An Example Of The Value Chain Model

Trading Center