Stock Buyback Definition Advantages How It Works
3141 reads · Last updated: November 14, 2025
A buyback is a company's purchase of its outstanding stock shares. Buybacks reduce the number of shares available on the open market.Companies usually buy back shares of their stock to increase the value of the remaining shares by reducing the supply of them. They may also buy back shares to prevent a major shareholder from taking a controlling stake in the company.
