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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