A company buys back its shares on the stock market at the current market price. Transactions are executed by the company's broker. Buying back a large number of shares is typically executed over a period of time, otherwise placing a huge market buy order may eat up a lot of sell liquidity and push the stock price up significantly.
What is a stock buyback?
Public companies that have decided to do a stock buyback typically announce that the board of directors has passed a “repurchase authorization,” which details how much money will be allocated to buy back shares—or alternatively the number of shares or percentage of shares outstanding it aims to buy back. Why Do Companies Buy Back Their Own Stock?
What is a share buyback?
Share buyback: a company buys shares of its stock on the open market or through shareholders tendering their shares at a specific price. There are several reasons why a company may choose to buy back some of its own shares. 1. The Stock is Undervalued
