Share Repurchase
A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued.
Investopedia Commentary
Because a share repurchase reduces the number of shares outstanding (i.e. supply), it increases earnings per share and tends to elevate the market value of the remaining shares. When a company does repurchase shares, it will usually say something along the lines of, "We find no better investment than our own company."
Related Links
A Breakdown Of Stock Buybacks
Value By The Book
See also: Buyback, Earnings per Share - EPS, Normal Course Issuer Bid, Outstanding Shares, Overvalued, Treasury Stock, Undervalued
Also spelled: Share Re-purchase, Buyback, share buyback, stock buyback