Stock Buybacks Explained: How They Impact Share Prices

5 days ago
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A stock buyback is when a company repurchases its own shares from the market, reducing the number of outstanding shares. This often boosts earnings per share (EPS) and can drive up the stock price by signaling confidence in the company’s financial health. Buybacks also return value to shareholders, but excessive use may raise concerns about whether funds are being diverted from long-term growth investments.

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