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Thursday, 09/26/2019 11:53:32 AM

Thursday, September 26, 2019 11:53:32 AM

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What is a stock buy back?

A stock buyback, also known as a share repurchase, occurs when a company buys back its shares from the marketplace with its accumulated cash. A stock buyback is a way for a company to re-invest in itself. The repurchased shares are absorbed by the company, and the number of outstanding shares on the market is reduced. Because there are fewer shares on the market, the relative ownership stake of each investor increases.

https://www.investopedia.com/articles/02/041702.asp