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 ?
During the period from February 19 up to and including February 23, 2007, ASML acquired 4,725,000 of its shares pursuant to the share buyback program, at an average price of EUR 19.
I am pleased with the recommendation from the Board to commence a substantial share buyback programme.
The company said that on 1 March 2017, it announced a share buyback programme of DKK664m.
The ongoing improvement in our financial strength enables us to start a further share buyback program," stated CFO Dirk Kaliebe.
In order to fund the share option programme, the BoD approved the share buyback of up to 4.
M2 EQUITYBITES-November 15, 2017-GN Store Nord reports on share buyback programme
In connection with this share repurchase program, the Company has entered into two accelerated share buyback agreements with Goldman, Sachs & Co.
NORDIC BUSINESS REPORT-November 8, 2017-GN Store Nord reports on share buyback programme
M2 EQUITYBITES-November 8, 2017-GN Store Nord reports on share buyback programme
Heidelberger Druckmaschinen AG concluded last week the share buyback program begun on November 9, 2005.
NORDIC BUSINESS REPORT-October 25, 2017-GN Store Nord reports on share buyback programme