share buyback

A share buyback is when a company purchases its own shares from the stock market. This can increase the value of remaining shares by reducing the total number available, often leading to a higher earnings per share (EPS). Companies may do this to utilize excess cash, boost stock prices, or improve financial metrics. Share buybacks can signal confidence in the company’s future, but they can also be seen as a way to return value to shareholders instead of investing in growth opportunities. Overall, it’s a strategic financial decision made by company management.