Buyback Ratio
Buyback Ratio is the number of shares a shareholder can sell in a buyback based on the shares they hold.
Buyback ratio tells investors how many of their shares are eligible to be accepted by the company during a buyback offer.
It is usually expressed as a ratio, which helps shareholders understand how many shares they can tender compared to the total shares they own.
This is important because in most cases, the company does not buy all the shares offered by investors, especially when many shareholders participate.
Example:
If a company announces a buyback ratio of 3:20, it means a shareholder can sell 3 shares for every 20 shares they hold. So, if you own 100 shares, you can tender 15 shares in the buyback.