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Stock Buyback
Term category: Stocks
In 10 words or less:  A practice employed by companies to return value to shareholders by repurchasing shares.

Definition: A stock buyback occurs when a company returns capital to shareholders by buying back its own shares.  Because there are fewer shares outstanding afterwards, the value of each share goes up.

StockJargon Advice: Stock buybacks tend to be good for investors because they are tax-efficient ways to deploy capital.

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