Share Buyback

When a company repurchases its own shares, reducing the number outstanding.

A share buyback is when a company uses its cash to buy back its own stock from the open market. It reduces shares outstanding, which increases earnings per share and often boosts the stock price. It is an alternative to paying dividends and is generally more tax-efficient for shareholders.

The company's share buyback shrank its share count, lifting earnings per share even as profit held flat.