buyback
a company repurchasing its own shares
In more detail
1. (noun) the act of a company buying back its own shares of stock from investors
2. (noun) an agreement where a seller agrees to buy back something they sold at a later date
Examples
- 1. The company announced a $5 billion stock buyback to increase shareholder value.
- 2. The car dealer offered a buyback guarantee if the customer was not satisfied within 30 days.
How to use buyback
Buyback is a technical term used in finance and business contexts. It refers either to a company's repurchase of its own shares (most common in modern usage) or to a contractual obligation for a seller to repurchase goods. The share buyback sense is standard in corporate finance discussions and investor communications; the resale agreement sense appears in retail and contract law but is less frequently used.
Common phrases
- share buyback
- stock buyback program
- buyback agreement
- announce a buyback
- authorize a buyback
Synonyms
repurchase · redemption · share repurchase · stock buyback
Word family
buy back (verb phrase)
A common mistake
Learners sometimes confuse buyback with buyout; a buyback is a company buying its own shares or a seller buying back something sold, while a buyout is typically one company or person acquiring another.
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