STOCK BUYBACK Comprehensive, practical, and investor-focused — this guide explains what share buybacks are, why companies do them, the mechanics and accounting, the strategic effects on value and capital structure, the regulatory and tax considerations, and real-world prominent buyback programs from the US, China, UK/Europe and India. A clear tabular breakdown of advantages and disadvantages is included. Executive summary A share buyback (also called a share repurchase) is when a company purchases its own outstanding shares from the marketplace or directly from shareholders. Buybacks reduce the number of shares outstanding, change capital structure, can return cash to shareholders, and send a signal about management’s view of the company’s prospects. Companies pursue buybacks for many r...
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