Stock Buyback

Stock Buyback is the repurchase of outstanding shares (repurchase) by a company to be able to reduce the volume of shares out there. Companies will invest in back shares either to enhance the value connected with shares still available (reducing supply), or to do away with any threats by means of shareholders who may be searching for a controlling stake. Stock buyback could be the re-acquisition by an organization of its personal stock. It represents a more flexible way (relative in order to dividends) of heading back money to investors.