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Investing & the Stock Market vocabulary · Dividends & Corporate Actions

Share buyback

Meaning in investing & the stock market, with examples

/ˈʃer ˌbaɪbæk/nounCommon term

In investing & the stock market, share buyback means: A company buying back its own shares from the market, which reduces the number of shares available and returns cash to shareholders in a different way from dividends.

In Turkish: pay geri alımı, hisse geri alımı

How it is used

Companies announce, launch, extend or suspend a share buyback programme, usually with a maximum amount or number of shares. Analysts say buybacks support the share price and raise earnings per share. Americans also say 'stock repurchase'.

Example sentences

  1. The board approved a share buyback of up to 500 million lira.

  2. Some investors prefer a share buyback to a dividend because of how each is taxed.

Common collocations

  • share buyback programme
  • announce a share buyback
  • buy back shares
  • stock repurchase
  • dividendA part of a company's profit that it pays to its shareholders, usually in cash and usually a fixed amount for each share.
  • earnings per shareA company's net profit for a period divided by the number of its shares. It shows how much profit belongs to each single share.
  • shareholderA person or organisation that owns one or more shares in a company and therefore owns part of it, with rights such as voting and receiving dividends.
  • free floatThe part of a company's shares that can actually be traded on the market, excluding shares held by controlling owners, the state or other long-term holders.

More terms: Dividends & Corporate Actions

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This page explains English vocabulary for learners. It is not financial advice.