Share repurchases are another term for share buybacks. This occurs when a company uses its accumulated cash to purchase its own stock on the market. Companies that do this view the buyback as the best use of capital at the time and aim to increase shareholder value. Companies may choose to repurchase shares so that each share represents a higher percentage of future company earnings, potentially resulting in a larger dividend.

Share buybacks, also known as stock repurchases, occur when a company buys back its own shares from the open market. This process reduces the number of outstanding shares, often increasing the value of remaining shares by boosting earnings per share (EPS) and potentially raising the stock price. Companies undertake buybacks to return surplus cash to shareholders, signal confidence in the company's prospects, or to utilize a tax-efficient method of rewarding shareholders compared to dividends. Additionally, buybacks can improve financial ratios and help manage capital structure. However, they can also attract criticism if perceived as a way to artificially inflate stock prices or if they divert funds from potentially more productive investments such as research and development or expansion initiatives.