What is a Share Buyback?

Repurchases or a buyback of shares are when a company that issued the shares repurchases the shares back from its shareholders. During a repurchase or buyback, the company pays shareholders the market value per share. With a repurchase, the company can purchase the stock on the open market or from its shareholders directly. Share repurchases are a popular method for returning cash to shareholders and are strictly voluntary on the part of the shareholder.

Reference: Investopedia Repurchases and Redemptions

Updated on: 30/05/2024