# Share Buyback

*Corporate Finance & M&A — Finicade finance glossary*

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.

**Also known as:** stock buyback, share repurchase, buyback

**Related terms:** [Dividend](https://finicade.com/glossary/dividend), [Treasury Stock](https://finicade.com/glossary/treasury-stock), [EPS (Earnings Per Share)](https://finicade.com/glossary/eps), [Capital Structure](https://finicade.com/glossary/capital-structure), [Recapitalization](https://finicade.com/glossary/recapitalization)

Source: https://finicade.com/glossary/share-buyback