Introduction
Investing in the stock market can be a daunting task‚ especially for beginners․ There are numerous factors to consider‚ such as company performance‚ market trends‚ and financial stability․ One aspect of investing that often causes confusion is stock buybacks․ In this article‚ we will explore what stock buybacks are‚ why companies engage in them‚ and what investors should know about this practice․
What are Stock Buybacks?
Stock buybacks‚ also known as share repurchases‚ occur when a company buys back its own shares from the market․ This means that the company uses its cash reserves to purchase the outstanding shares of its stock․ These shares are then retired or held as treasury stock‚ reducing the total number of shares available to the public․
