Buyback: meaning, definitions and examples
๐ต
buyback
[ หbaษชหbรฆk ]
financial transaction
A buyback is a financial transaction in which a company purchases its own outstanding shares in order to reduce the number of shares available on the open market. This can lead to an increase in the value of remaining shares and is often viewed positively by investors. Companies typically conduct buybacks when they believe their stock is undervalued or to improve financial ratios. It can also be part of a broader strategy to return capital to shareholders.
Synonyms
repurchase, share repurchase, stock buyback
Examples of usage
- The company announced a significant buyback program to enhance shareholder value.
- After the buyback, the price of the stocks rose noticeably.
- The CEO explained how the buyback would benefit the company's financial health.
- Investors reacted positively to the news of the stock buyback.
Translations
Translations of the word "buyback" in other languages:
๐ต๐น recompra
๐ฎ๐ณ เคฌเคพเคเคฌเฅเค
๐ฉ๐ช Rรผckkauf
๐ฎ๐ฉ pembelian kembali
๐บ๐ฆ ะฒะธะบัะฟ
๐ต๐ฑ odkup
๐ฏ๐ต ่ช็คพๆ ช่ฒทใ
๐ซ๐ท rachat
๐ช๐ธ recompra
๐น๐ท geri alฤฑm
๐ฐ๐ท ์์ฌ์ฃผ ๋งค์
๐ธ๐ฆ ุฅุนุงุฏุฉ ุงูุดุฑุงุก
๐จ๐ฟ zpฤtnรฝ odkup
๐ธ๐ฐ spรคtnรฝ odkup
๐จ๐ณ ๅ่ดญ
๐ธ๐ฎ odkup
๐ฎ๐ธ aftaka
๐ฐ๐ฟ าะฐะนัะฐัั
๐ฌ๐ช แแแแแแฌแแ แ
๐ฆ๐ฟ geri alฤฑm
๐ฒ๐ฝ recompra
Word origin
The term 'buyback' originated in the financial lexicon during the rise of public companies in the mid-20th century. It reflects a shift in corporate strategies where executives began to focus on maximizing shareholder value amid increasing competition for investor attention. Emerging in the 1980s, as companies faced pressures from shareholders for better returns, buybacks became a popular tool to signal confidence in the company's future prospects. As corporations started to prioritize stock repurchase programs, the concept gained legitimacy and became a standard practice in corporate finance. The term itself combines 'buy,' reflecting the act of purchasing, and 'back,' indicating that the company is acquiring what it has previously issued to the public. Over time, buybacks have evolved, incorporating various methods, including open market repurchases and tender offers.