Buyback
Buyback is when a company buys back its own shares from investors.
Buyback (or share repurchase) is when a company purchases its own shares from existing shareholders. This reduces the total number of shares available in the market.
Companies usually do buybacks to return extra cash to investors, improve earnings per share (EPS), or show confidence that their shares are undervalued.
When the number of shares decreases, the value of remaining shares may increase, which can benefit shareholders.
Buybacks can be done through methods like open market purchases or direct offers to shareholders.
Example:
If a company announces a buyback at ₹350 while its market price is ₹300, investors may see it as a positive sign, and the share price may increase.