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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive ?

According to Chen, Goldman Sachs has USD6.6bn to USD8.6bn in excess capital, which is enough to buy back eight to 11 percent of its stock.

Credit Suisse analyst expects stock buy back of Goldman and Morgan Stanley

HSBC is offering to buy back senior notes with a notional value of up to GBP500m at 84.5 percent to 91 percent of their face value and junior notes with a face value of up to GBP150m at 15 percent to 74.25 percent of their face value.

HSBC offers to buy back CLO debt

Under this programme, Pandora will buy back shares for an amount up to DKK1,800m during the period from 7 February 2017 to 6 February 2018.

Pandora reports on share buy back programme

According to the company, to cover commitments under the 'Long Term Incentive Programme 2012/2015', approved by the Annual General Meeting in 2012, the board decided to buy back a maximum of 300,000 shares.

TeliaSonera's board decides to buy back shares approved in AGM 2015

In this situation, the companies decide to buy back shares to give confidence to their shareholders.

Nishat Chunian to buy back 32m shares at higher price

Broker finncap will carry out the buy back programme, which will continue until 25 September.

Minds + Machines Group kicks off share buy-back programme

They were the first ones to announce buy back under the Securities and Exchange Commission of Pakistan Regulations.

Arif Habib boards approve share buybacks

This decision is reportedly in line with the ambition to buy back shares for an annual amount of SEK5.0bn over the coming three year period, totalling SEK15bn.

Telia Company decides on new SEK5bn share buy-back programme

Second, when corporations direct resources to buy back shares on this scale, they restrain their capacity to reinvest profits more meaningfully in the company in terms of R&D, equipment, higher wages, paid medical leave, retirement benefits and worker retraining.

A one-time cure for US corporations buy-back mania

Under the proposal, the bank cannot buy back more than 4.99% of the Government's stake in any one year.

RBS seeks permission to buy shares back early

(PLC), the gaming investment arm of Belle Corp., seeks to jack up shareholder value by setting aside P500 million to buy back shares from the stock market.