Buy back shares

Buyback or Buyback, buyback (from English. buy back - buyback) — redemption by the issuer of its own shares. In most cases, share buybacks by a company are considered to be an indicator of the company's surplus cash., however, it is often a forced measure, against the fall in the company's market value. As a result of this transaction, net earnings per share increase., which entails an increase in confidence in the company among investors and has a positive effect on exchange rates. Repurchase of shares for their subsequent cancellation avoids the dilution of the company's capital due to the issue of new securities. During periods of market decline, the number of companies increases, who announce the buyback of their shares. Share buybacks are fairly common. Nevertheless, the trading community often does not realize the value of such news and the possibility of their use in the process of investing or analyzing.