Buyback is a term that is commonly used in the business world. It refers to the repurchase of outstanding shares of a company’s stock by the company itself. This process is often used as a way for companies to return capital to shareholders or to manipulate the company’s stock price. In this article, we will explore the definition, origin, and meaning of buyback, as well as its associations, synonyms, and antonyms.
Definitions
A buyback is a financial transaction in which a company purchases its own outstanding shares of stock. This can be done in a number of ways, including through open market purchases, tender offers, or private negotiations. The goal of a buyback is to reduce the number of outstanding shares of the company’s stock, which can have the effect of increasing the value of the remaining shares.
Origin
The term buyback has been used in the financial industry for many years. Its origin can be traced back to the practice of repurchasing goods that had been sold by a company. In the context of the stock market, buybacks have been used since the early 20th century as a way for companies to manipulate their stock prices.
Meaning in different dictionaries
According to Merriam-Webster, buyback is defined as “the repurchase by a corporation of its own stock from shareholders.” The Oxford English Dictionary defines it as “the act of buying back something that has been sold, especially shares of a company’s stock.”
Associations
Buybacks are often associated with companies that have excess cash or are looking for ways to increase their stock price. They can also be seen as a way for companies to return capital to shareholders without paying dividends.
Synonyms
Synonyms for buyback include repurchase, redemption, and buyout.
Antonyms
Antonyms for buyback include sale, disposal, and divestiture.
The same root words
The root words of buyback are “buy” and “back.” These words are used to describe the process of a company purchasing its own shares of stock that were previously sold.
Example Sentences
- The company announced a buyback of its own shares in order to increase the value of the remaining shares.
- The board of directors approved a $1 billion buyback program to return capital to shareholders.
- The company’s stock price increased after news of the buyback was announced.
- The buyback was completed at a price that was higher than the current market price of the stock.
- The company’s management team believed that the buyback was the best use of the company’s excess cash.