When corporation buys its own stock called?

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1262011

2026-04-06 19:10

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When a corporation buys its own stock, it is referred to as "stock buyback" or "share repurchase." This process allows the company to reduce the number of shares outstanding, which can increase the value of remaining shares and improve financial ratiOS. Companies may engage in buybacks to return capital to shareholders or to signal confidence in their own financial health.

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