Share Buyback
Also called: stock buyback, share repurchase, buyback
A share buyback returns cash to shareholders by repurchasing stock, raising earnings per share by shrinking the share count. It's more tax-efficient than a dividend and more flexible, since it carries no expectation of repetition. Its abuse is well documented: buying back at high prices, funding repurchases with debt, and offsetting share issuance to executives rather than genuinely reducing the count.
Want more than a definition? Learn it in Capital Quarters →