Financial Terms: What is Buyback? Know How Companies and Investors Get Benefit With These Shares

Buyback Shares: When a company buys its shares from the open market, it is called buyback. Sometimes the company has more cash in its book and therefore buys its shares to sell to the market. This is a way for the company to throw cash into the market and get its share back. 

Buyback Share Benefits

Buybacks can increase earnings per share (EPS) by reducing the total number of outstanding shares, making each one more valuable. Furthermore, companies that repurchase shares with excess cash make better use of their resources, increasing shareholder value. Buybacks also allow for the return of capital to shareholders, which is a tangible benefit for those looking to maximize their investment returns.