Buyback Definition

A buyback, or share repurchase, is when a company purchases its own outstanding shares from the market.

What is a Buyback?

Buybacks reduce the number of shares outstanding, which can increase earnings per share and may support the share price.

Companies may use buybacks to return capital to shareholders as an alternative to dividends.

A company repurchasing 5 million of its own shares from the open market is conducting a buyback.

A balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point in time.

A bar chart is a price chart that shows the open, high, low, and close for a security over a set period using vertical bars.

The base currency is the first currency listed in a currency pair, against which the second currency is quoted.