Mr Cooper Group Inc (COOP)

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Share buybacks don't work like that The buyback essentially reduces the number of shares. Its not that the company buys them and holds them. The company is buying them to reduce the total share count in an effort to improve the earnings per share.

It usually happens only when A) the management / board believe the stock is trading below where it should be, AND B) the company is holding excess capital that can be used for this purpose.

I have also seen situations where a company will issue debt or preferred securities (paying a dividend) and use the entire proceeds just to buy back shares. This is somewhat common if the company has a good credit rating and interest rates are LOW.