Stock Buyback

A stock buyback, or share repurchase, occurs when a company buys back its own stock from the market, reducing the number of shares available to investors. This can increase earnings per share (EPS), support stock prices, and signal confidence from company management. Companies use buybacks as an alternative to dividends to return capital to shareholders. However, some critics argue that excessive buybacks prioritize short-term stock price gains over long-term investment in the business.