stock buybacks

Stock buybacks occur when a company repurchases its own shares from the market. This reduces the total number of shares outstanding, often increasing the value of remaining shares and potentially boosting earnings per share. Companies buy back stock using excess cash, signaling confidence in their financial health or aiming to return value to shareholders. While buybacks can improve stock price metrics, they are sometimes controversial if done at the expense of investing in growth or employee programs. Overall, buybacks are a strategic tool for companies to manage their capital and influence their stock performance.