Definitions (3)

2. A corporation's repurchase of stock or bonds it has issued. In the case of stocks, this reduces the number of shares outstanding, giving each remaining shareholder a larger percentage ownership of the company. This is usually considered a sign that the company's management is optimistic about the future and believes that the current share price is undervalued. Reasons for buybacks include putting unused cash to use, raising earnings per share, increasing internal control of the company, and obtaining stock for employee stock option plans or pension plans.
When a company's shareholders vote to authorize a buyback, they aren't obliged to actually undertake the buyback. also called corporate repurchase.
3. Same as repo.

Use buyback in a sentence

Activist investors often encourage directors and company executives to enhance shareholder value through a combination of increased dividends and share buybacks.

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In an attempt to increase the market value of their stock, the company issued a buyback of stock shares which decreased the number of available shares and increased the stock value.

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In light of a recent influx of hard cash many financial institutions have initiated a Buyback of their stocks to increase value and to shrink the pool of voting shareholders.

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leveraged recapitalization shareholder value