stock buyback
- noun
- /stɑk ˈbaɪˌbæk/
- Specialized
- The company initiated a stock buyback to enhance shareholder value and stabilize its stock price.
- stock buyback program
- stock buyback plan
- billion stock buyback
What is a stock buyback and why do companies do it?
- What is a stock buyback and why do companies do it?
- And so that's what created the stock buyback boom.
- Companies are issuing record stock buybacks.
- And they say we're going to give back a lot of it in dividends or we're going to do big stock buybacks to pump up the price.
- Later in the afternoon, there was a sustained rise in financial markets as companies announced stock buyback programs to support demand for their stocks.
- We see this cost today in the massive stock buybacks which have to happen at firms like Salesforce to keep their share count from rising and earnings per share from falling.
Examples
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Given the amount of cash used on M&A transactions closing this quarter, coupled with the cash used for our stock buyback program, we elected to utilize our existing line of credit, tapping $110 million.
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For investors seeking a reasonably safe return and a less volatile investment, a great deal of value can be found in Cisco these days since the company now plans to return half of its cash flow to investors by way of dividends and stock buybacks.
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And in fact, there are many companies and they do stock buybacks instead of paying dividends.
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Later in the afternoon, there was a sustained rise in financial markets as companies announced stock buyback programs to support demand for their stocks.
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According to the announcement, the company will try to return half of its cash flow to investors in terms of dividends and stock buybacks from now on.
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Facebook is about to do a huge stock buyback at less than half of what it received for its shares at the IPO four months ago!
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They want regulators to allow them to start paying, or increasing, dividends to investors or to initiate stock buyback programs.
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Yahoo's board and later its CFO Tim Morse had promised to return the money to shareholders by way of a stock buyback.
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Wyndham's shares could move up another 20% as profits grow and the hotelier and time-share operator continue its aggressive stock buyback program.
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Don't be too surprised this week (or somewhere in the middle of August, when everybody is on vacation), if Apple announces a massive stock buyback, tantamount to driving speculation that Apple may be taking itself private.
Blog text (3)
Synonyms
To pay money to get something you once sold, lost, or gave away
An agreement where someone buys back something they sold before, often a company buying its own shares
Buying back something that was sold before
Surface Forms
Morphology
stock + buyback
The meaning 'a corporation repurchases its own shares' is directly compositional from 'stock' (shares) and 'buy back'/'buyback' (to repurchase). This is a straightforward nominal combination and the concept of repurchasing shares is expressed similarly in many languages, so a B1 learner who knows the constituents will readily infer the meaning.
Etymology
The term stock buyback comes from the simple idea of a company literally buying back its own stock. Imagine the company taking shares off the market like removing items from a shop shelf, so there are fewer shares left and each one is often 'worth more', and the action can show the company's 'confidence'.