What is the buyback of shares and their advantages?

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The buyback of shares is when a company wants to buy back its shares from the shareholders. It is a corporate action with many financial and legal processes. During the buyback process, companies offer a higher than market price rate for the repurchase of shares.

Advantages of Share Buyback for shareholders and company:

  • Quick and better exit route.
  • Better Valuation.
  • Tax efficient way to reward the shareholders.
  • Increases Share Prices.
  • Protects against takeovers.


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