Definition
When a company uses its cash to buy back its own shares from the market.
The story
With fewer shares left, each remaining share owns a slightly bigger slice of the company, and earnings per share can rise even if total profit doesn't. Buybacks are a way to return cash to shareholders, alongside dividends.
Why markets watch it
Big buyback announcements often make headlines, especially from the largest tech companies.
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We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms