share buyback


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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.

share buyback

the purchase by a company of its own shares thereby reducing the amount of its ISSUED CAPITAL. Share buybacks are undertaken to return ‘surplus’ cash reserves to shareholders; more particularly they are undertaken to increase EARNINGS PER SHARE and DIVIDEND per share and thus (hopefully) lead to a rise in the company's share price. See SHARE ISSUE.

share buyback

the purchase by a company of its own shares, thereby reducing the amount of its ISSUED CAPITAL. Share buybacks are undertaken to return ‘surplus’ cash reserves to shareholders; more particularly, they are undertaken to increase earnings per SHARE and DIVIDEND per share and thus (hopefully) lead to a rise in the company's share price. See SHARE ISSUE.
References in periodicals archive ?
Under this share buyback programme, which is running from 1 May 2019 and ending no later than 10 March 2020, GN Store Nord intends to buy back shares for an amount of up to DKK1,000m.
EFG's share buyback programme started on 27 July 2018 and was concluded on 12 March 2019.
According to the report, share buybacks are usually good for existing investors as they reduce the number of shares on the open market which should boost the value of available shares.
For the right company, a well executed share buyback will benefit shareholders and could lead to a re-rating of the company's market pricing.
The share buyback, which will start immediately, reflected the board's confidence in the group's ongoing cash flow, the company said in a statement.
In theory, the best time to put a share buyback into operation is after a stock market crash, when the shares of many companies can be purchased for less than net asset value.
The share buybacks came to 582.1 billion yen in 1999 and 677.8 billion yen in 2000, respectively, according to the think tank.
The company said its board of directors, acting under its share buyback authorisation, had initiated a share buyback programme on 1 May 2019 in order to reduce the company's share capital and to cover obligations under the long-term incentive programme.
Provider of intelligent audio solutions GN Store Nord A/S (CPH: GN) reported on Tuesday that under its share buyback programme it has accumulated a total of 1,015,365 shares, at an average purchase price of DKK319.77, for a total value of DKK324,686,281.
Adidas announced that its board has decided to launch a multi-year share buyback program of up to EUR 3B in total until May 11, 2021.
XL Group plc (XL or the Company) announced today that the Board of Directors of the Company (the Board) approved a new share buyback program, authorizing the Company to buy back up to $1 billion of its ordinary shares.
NORDIC BUSINESS REPORT-August 14, 2019-GN Store Nord reports on share buyback programme