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What is buyback of shares in stock market?

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Buyback of shares is a process through which a company decides to repurchaseshares it had sold earlier.

This can be done through 3 methods:

  1. Open Market
  2. Tenders
  3. Odd Lot purchase

Since a buyback of shares happens at a higher price than the market share price, it is one of the ways to reward a shareholder.


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