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Definition of «buyback»

A buyback is a financial mechanism in which a company repurchases its own shares from shareholders. This can be done either on the open market or through direct transactions with shareholders, and it involves using corporate funds to purchase stocks that were previously issued by the same company. The purpose of a buyback program may vary, but generally speaking, companies engage in this activity when they believe their shares are undervalued, as a way to return value to shareholders or to increase earnings per share (EPS).

Usage examples

  1. The company announced a buyback of its own shares to increase shareholder value.
  2. The executive team is considering a buyback strategy to minimize dilution of the stock.
  3. The board of directors approved a $1 billion buyback program to signal confidence in the company's future prospects.
  4. The company utilized its excess cash to initiate a share buyback, demonstrating its commitment to returning value to shareholders.
  5. The buyback of its high-yield bonds helped the company reduce its debt burden and improve its overall financial position.
  6. The management decided to fund a stock buyback plan to take advantage of undervalued stock prices and boost earnings per share.

Phrases with «buyback»

Sentences with «buyback»

  • Why gamble on purchasing a pre-owned vehicle when you can get a CARFAX Buyback Guarantee for free from Crown Acura Greensboro. (shoppok.com)
  • The bank also introduced a three - year share buyback program of up to 2 billion Swiss francs. (cnbc.com)
  • Some 92 percent of corporate profits in recent years have been spent on stock buyback programs and dividend payouts. (michael-hudson.com)
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See also

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