Meaning & use

stock buyback

noun·Advancedbusinessfinance

Last updated

UK/ˈstɒk ˈbaɪbæk/
US/ˈstɑːk ˈbaɪbæk/

Meanings

  1. nouncountablebusinessfinance

    A company's purchase of its own shares from investors, usually to reduce the number of shares in circulation.

    Grammar: Countable: a stock buyback, several stock buybacks.

    Patterns

    • announce a stock buyback
    • a stock buyback program
    • fund a stock buyback

    The board announced a $2 billion stock buyback.

    A stock buyback can raise the value of the remaining shares.

    Critics say the company should invest in new plants instead of spending on stock buybacks.

  2. noununcountablebusinessfinance

    The act of buying back shares, seen as a way to return cash to shareholders.

    Grammar: Used without 'a' when talking about the practice in general.

    Patterns

    • use stock buyback to do something
    • a wave of stock buyback

    Stock buyback has become a popular way to return money to investors.

    Analysts debated whether stock buyback helps long-term growth.

Word forms

pluralstock buybacks

Common combinations

announce a stock buyback
The firm announced a stock buyback after strong earnings.
a stock buyback program
The company launched a stock buyback program last spring.
share buyback
In Britain the same move is called a share buyback.
fund a stock buyback
They borrowed money to fund a stock buyback.
a record stock buyback
Last year saw a record stock buyback in the tech sector.

Synonyms and how they differ

share repurchase
More formal and neutral in tone; common in official documents and academic writing.
share buyback
The usual British term for exactly the same thing.

Opposites

share issue

Word family

buyback noun
Any situation where someone buys back something they sold.
buy back verb
To purchase something again from the person you sold it to.

Commonly confused: stock buyback or buyout?

stock buyback vs buyout

A buyout is when someone buys a whole company or a controlling share of it, not the company's own shares.

Practice

What does a 'stock buyback' involve?

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