Share buybacks refer to a process whereby a company repurchases its own shares from shareholders, thereby reducing the number of outstanding shares and increasing the value of each remaining share. This can be done either through open market purchases or by issuing a tender offer directly to shareholders. The goal is typically to return excess capital to shareholders while also boosting earnings per share (EPS) and increasing stock price. Share buybacks are often used as a way for companies to signal their confidence in the future, since they involve using cash reserves or borrowed funds to purchase shares at current market prices.