stock buyback

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Stock buyback

A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

stock buyback

See buyback.
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 ?
H2: There is no significant difference in stock price in each of the five years following a stock buyback across firms and by industry group between buyout and non-buyout samples.
There are several reasons of stock buybacks. Supporters of buybacks say that buybacks place money into investor 's hands in a tax-efficient manner.
Networking giant Cisco Systems spent $15 billion on a stock buyback program, an amount higher than its net income of $10 billion and 2 1/2 times what the company spent on research and development, while laying off 5 percent of its workforce, or 4,000 employees (Yang, 2013).
In the recent past, stock buybacks by the S&P 500 peaked at $172 billion in the third quarter of 2007 -- when the market was at its peak -- and reached a trough at $24 billion in the second quarter of 2009, just after the market had hit bottom in March of that year.
Daimler AG (Daimler) (NYSE: DAI) (FWB: DAI), a Germany-based automaker, is likely to restart its EUR6bn stock buyback programme.
In addition on 6 May 2008, SkyWest's board authorised an additional stock buyback programme of 5.0m shares.
PUTNAM - PSB Holdings Inc., the parent of Putnam Savings Bank, has completed a stock buyback program and authorized a new one.
Perhaps the biggest question concerning the company's fortunes is whether Bill Gates will do a stock buyback to push shares higher.
has authorized a new $7 billion stock buyback program, replacing a previous $5 billion program.
150-3 (, contains reformation for nonpublic entities with certain stock buyback agreements with their major stockholders.
He adds: "My professors at Wharton [the business school at the University of Pennsylvania] will tell you that a stock buyback is a wash.
approved a company proposal for stock buyback and incentive stock option plans at an annual meeting Wednesday.