share repurchase plan
Stock Repurchase Plan
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
share repurchase plan
A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and that its shares are undervalued. Repurchase of the shares will decrease the amount of outstanding capital stock, increase earnings per share, and, it is hoped, result in an increase in the price of the stock.
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.