Definition, Meaning & Synonyms
buyback
noun
/ˈbaɪˌbæk/
Definition
A buyback is a process where a company repurchases its own shares from the marketplace.
Examples
- The company announced a stock buyback program worth $500 million.
- During the buyback, the firm purchased 2 million shares at $25 each.
- Investors often view buybacks as a sign that the company is performing well financially.
Meaning
This can be done to reduce the number of outstanding shares, increase the value of remaining shares, or to utilize excess cash that the company has.
Synonyms
- Share repurchase
- Stock buyback
- Share buyback
