Glossary

Share buyback

A company buying its own shares, usually on the stock market, and often cancelling them, so fewer shares remain.

Comparison The same profit divided by fewer shares after a buyback raises earnings per share from 1.00 to 1.11. Before Profit 100m 100m shares EPS 1.00 After buyback Profit 100m 90m shares EPS 1.11

← All terms