A share repurchase or buyback transaction involves two mutually interested parties: a shareholder and the company.
When a company buys its own shares back from existing shareholders, this transaction is referred to as a share buyback or share repurchase. This article will examine the pros and cons of whether it is good for businesses to participate in this activity, considering all possible advantages and downsides. When a company purchases its own shares from its shareholders, this practice is referred to as a “share buyback,” and the end result is a reduction in the overall number of shares that are currently available on the market. The practice of buying back shares, also known as repurchasing shares, has been the subject of a great deal of discussion over the course of the last several years, and many people are skeptical about whether or not it is profitable for businesses. Advantages and Disadvantages of Buyback of Shares
