Learn / Glossary / Stock buyback
GlossaryWhat is Stock buyback?
A buyback is when a company buys its own shares from the market.
The simple explanation
When a company buys back shares, there are fewer shares left. Each remaining share then owns a slightly bigger slice of the company, which can lift earnings per share.
An example
A company spends 5 billion dollars buying its own stock instead of paying it out as a dividend.
Why it matters
Buybacks are another way companies return cash to shareholders.
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Educational information, not financial advice.