stock buyback

Also found in: Dictionary, Thesaurus, Legal, Wikipedia.

Stock buyback

A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share.


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.

stock buyback

See buyback.
References in periodicals archive ?
companies in the value of stock buybacks in the last quarter of 2013.
This news release contains, in addition to historical information, forward-looking statements related to the proposed stock buyback program, including the timing and, total number of shares to be purchased under the proposed stock buyback program.
About 1,600 companies have announced they would buy back their stocks since the ban on stock buyback was lifted four years ago, but less than a third of those companies have actually done it, and the amounts of their purchases were meager,'' Segawa said.
As a result of entering into the accelerated stock buyback transaction and the associated retirement of repurchased shares, FTI Consulting has adjusted 2011 full year earnings guidance to a range of $2.
A stock buyback program signals to the market that management won't be funneling any more money into markets or product lines that are dead ends.
Stock buybacks are generally valuable to shareholders for a number of reasons.
Since Mr Icahn has dropped his proposal, shareholders will no longer need to vote on additional stock buybacks.
The recent move has increased Apple's total stock buyback to $40 billion shares in a span of 12 months.
6 /PRNewswire/ -- Standard & Poor's, the world's leading index provider, announced today that S&P 500 stock buyback activity significantly accelerated during the second quarter of 2007, posting its seventh consecutive quarter of $100 billion-plus in stock buybacks.
Additionally, the board authorized an additional $50 million for stock buyback, bringing the target to $100 million.
Under six previously completed stock buyback programs, Kronos repurchased a total of 6,187,500 common shares.