What is share buyback meaning?

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When a company wants to repurchase its shares back from the shareholders is known as a share buyback. The share buyback can be done either through a tender offer route or an open market offer.

In a share buyback, the company purchases its shares at a premium price thereby rewarding shareholders and providing an easy exit route. It also helps a company to strengthen the promoter's stake and prevent hostile takeovers.

Topic: Introduction to Buyback of shares Feedback

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