Program by which a corporation buys back its own shares in the open market. It is usually done when shares are undervalued. Since it reduces the number of shares outstanding and thus increases earnings per share, it tends to elevate the market value of the remaining shares held by stockholders.
Whereby a company buys its own shares back in the open market.
It occurs when a company buys its own shares on the open market. When it is done to improve shareholder value, the rationale is that the company prefers to use funds available to "reinvest" in the business than make other less apparently attractive investments or dividend distributions. Repurchases reduce the number of shares outstanding and therefore increase the earnings per share statistic.