A share buyback agreement allows a company to buy back its own shares from shareholders. This can be done for various reasons, such as to increase the percentage of ownership held by the company, to reduce the number of shares outstanding, or to raise cash. Share buybacks can be beneficial for companies because they can help to improve the financial ratios and increase earnings per share. However, share buybacks can also be disadvantageous for shareholders because they can reduce the number of shares outstanding and therefore the potential for future capital gains.
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