formal10K+

Buyback

UK //ˈbaɪˌbæk//US //ˈbaɪˌbæk//

Definition

A corporate action where a company repurchases its own shares from the marketplace.

In simple words: When a company buys back its own shares from the market.

Examples

  • The company announced a significant buyback to enhance shareholder value.
  • During the buyback, many investors took the opportunity to sell their shares.
  • Investors are often excited about a buyback because it indicates strong financial health.
  • A buyback can help increase the stock price by reducing the shares available in the market.
  • The buyback program was well received by the market analysts.

Usage notes

Used in financial contexts, mainly in discussions about companies and their stock management. Not common in everyday conversation.

Grammar pattern

buyback + object

Memory hint

Think of 'buyback' as buying back something lost, like your own company’s shares.

Collocations

  • stock buyback
  • share buyback
  • buyback announcement

Synonyms

  • repurchase
  • share buyback
  • stock buyback

Common mistakes

  • Confused with 'buy back' - it's a single word in finance.
  • Used incorrectly in casual conversations.
  • Assumed to refer to any purchase, not just shares.