A corporate action where a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This returns cash to shareholders and often increases earnings per share and stock price.
From Middle English 'stok' (trunk/stem) and 'repurchase' from Latin 're-' (again) plus 'purchase.' Stock buybacks became popular in the 1980s as companies sought tax-efficient ways to return cash to shareholders.
Stock repurchases can be brilliant or wasteful depending on timing - buying back shares when they're undervalued creates value, but doing it when shares are overpriced destroys value. It's like a company betting on its own stock price!
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