Chittorgarh.com Logo
Loading...

What is share buyback meaning?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

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.


Comments

Add a public comment...