Financial Terms Glossary

The most important financial terms - with simple and concise explanations.

Share buyback

Investors aren’t the only ones who can buy shares, as the public limited company itself can buy its own shares. To do this, the company's management obtains permission in advance at the general meeting. There are various reasons why a company buys back its shares such as to consolidate ownership. In general, the measure supports the share price because it reduces the supply of freely tradable shares.

Financial terms from A-Z

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