buy back


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Buyback

The act of a publicly-traded company buying its own stock, sometimes at a price well above fair market value. Buyback is not intended to stop trade on its stock. Rather, it is an attempt either to reduce the supply of shares in the market (with the hope of driving up the share price) or to prevent a real or suspected hostile takeover. If a company becomes its own majority or plurality shareholder, it either makes a hostile takeover impossible or more expensive for the acquiring company. A buyback may occur all at once or gradually over time. See also: Antitakeover measure, Self-tender offer.

buy back

To repurchase an asset or security. For example, a company may decide to buy back shares of its own stock from an investor in order to reduce the possibility of a takeover.
References in periodicals archive ?
Therefore we think that the price of funding is a millstone for Summa now and the value of funding will be crucial for the Group to set the buy back price.
Looking upon practical examples nearly all the buy back announcement have received a positive response from the market nearly in all cases prices have come closer to offer prices immediately after the announcement .
Germany: Germany suggested on Wednesday it was "possible" for the European Financial Stability Fund (EFSF) to buy back the bonds of a country in financial trouble.
Global Banking News-February 9, 2012--HSH Nordbank to buy back two subordinated bonds(C)2012 ENPublishing - http://www.
On Thursday Resolute said it was offering to buy back the 2018 bonds.
Accordingly, RUSAL s position, supported by the Court, has reaffirmed MMC s Board had no rights to approve the buy back in September 2011, as it contravened the law About the order of foreign investments in business entities of strategic importance for national defense and state security .
AEX, NYSE: NSK), the global satellite communications company, announced today that it has acquired through its previously announced share repurchase program a total of 12,042,407 ordinary shares, or 92 percent of the total authorized buy back program, at an average price of $4.
Under an amendment to its articles of incorporation in 1997, the company is allowed to buy back up to 370 million shares.
The buy back period shall last for one month, from October 25 to November 24.
A survey recently published by the University of Texas says that many companies offer to buy back stock to increase the stock's value and viability, but less than half of the buybacks ever take place.
Several companies have returned capital to investors by buying back shares or paying special dividends, but L&G is the first insurer to arrange to buy back a convertible bond issue for shareholders benefit.
The Buy Back Program is not only unprecedented for Best Buy, but we believe it can transform CE retailing as we know it today.