One way to make money when investing in stocks is through dividends–when companies pay you interest incrementally. Dividends aren’t the only way, however. Stock buybacks also known as share buybacks or share repurchase programs are another way for investors to get added value from a company as they make more money from shares. What is a Stock Buyback? Also known as a share repurchase program, stock buybacks are when a company repurchases their stock. In more detail, companies use their own cash to buy shares on the secondary market from any investors willing to sell. During stock buybacks, the number of shares floating around goes down, and assuming all things are equal, the value of the shares go up. Stock buybacks can be a a company’s alternative to increasing dividend payments. It’s key to note that shareholders don’t have to sell their stock back to the company. So, if you own stock in Apple, you don’t have to sell them back to the company if they do a stock buyback. How Do Stock Buybacks Work? Before a stock buyback takes place, the company in question