Buyback

A corporate action where a company repurchases its own shares from the marketplace, typically to return cash to shareholders, reduce share count, or support stock price. Buybacks can be executed through open market purchases or tender offers.

Compound from 'buy' (Old English bycgan, meaning to acquire) and 'back' (Old English bæc). The concept of companies repurchasing their own shares became popular in the 1980s following regulatory changes that made buybacks more attractive than dividends.