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.


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 ?
A stock buyback is the repurchase of outstanding stock from shareholders.
companies in the value of stock buybacks in the last quarter of 2013.
The new stock buyback programme will be launched after the completion of the prior programme, which is expected to occur shortly, depending on market conditions.
Although dividend payouts are generally smaller for repurchasing firms, as compared to their industry peers, the dividend payout ratios increase once the stock buyback program is over.
Stock buybacks - which could reach 9 percent of the outstanding shares - also should boost shareholder value.
M2 EQUITYBITES-February 27, 2018-Novozymes reports on stock buyback programme
NORDIC BUSINESS REPORT-August 22, 2017-Novozymes reports on stock buyback programme
Billionaire activist investor Carl Icahn has decided to drop his $50 billion stock buyback proposal to Apple Inc after respected proxy adviser Institutional Shareholder Services Inc (ISS) criticised his attempts of micromanagement.
BANKING AND CREDIT NEWS-November 4, 2011--Chicopee Bancorp wraps up fifth stock buyback programme(C)2011 M2 COMMUNICATIONS http://www.