Buyback: meaning, definitions and examples

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buyback

 

[ หˆbaษชหŒbรฆk ]

Noun
Context #1 | Noun

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:

๐Ÿ‡ต๐Ÿ‡น recompra

๐Ÿ‡ฎ๐Ÿ‡ณ เคฌเคพเค‡เคฌเฅˆเค•

๐Ÿ‡ฉ๐Ÿ‡ช Rรผckkauf

๐Ÿ‡ฎ๐Ÿ‡ฉ pembelian kembali

๐Ÿ‡บ๐Ÿ‡ฆ ะฒะธะบัƒะฟ

๐Ÿ‡ต๐Ÿ‡ฑ odkup

๐Ÿ‡ฏ๐Ÿ‡ต ่‡ช็คพๆ ช่ฒทใ„

๐Ÿ‡ซ๐Ÿ‡ท rachat

๐Ÿ‡ช๐Ÿ‡ธ recompra

๐Ÿ‡น๐Ÿ‡ท geri alฤฑm

๐Ÿ‡ฐ๐Ÿ‡ท ์ž์‚ฌ์ฃผ ๋งค์ž…

๐Ÿ‡ธ๐Ÿ‡ฆ ุฅุนุงุฏุฉ ุงู„ุดุฑุงุก

๐Ÿ‡จ๐Ÿ‡ฟ zpฤ›tnรฝ odkup

๐Ÿ‡ธ๐Ÿ‡ฐ spรคtnรฝ odkup

๐Ÿ‡จ๐Ÿ‡ณ ๅ›ž่ดญ

๐Ÿ‡ธ๐Ÿ‡ฎ odkup

๐Ÿ‡ฎ๐Ÿ‡ธ aftaka

๐Ÿ‡ฐ๐Ÿ‡ฟ า›ะฐะนั‚ะฐั€ัƒ

๐Ÿ‡ฌ๐Ÿ‡ช แƒ’แƒแƒ“แƒ›แƒแƒฌแƒ”แƒ แƒ

๐Ÿ‡ฆ๐Ÿ‡ฟ geri alฤฑm

๐Ÿ‡ฒ๐Ÿ‡ฝ recompra

Etymology

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.