In recent years, share repurchases have become a popular strategy among many publicly traded companies. But what exactly is a share repurchase, and why do companies choose to buy back their own shares? What is a Share Repurchase? A share repurchase, or stock buyback, occurs when a company buys back its own shares from the marketplace. By doing so, it reduces the number of outstanding shares, effectively increasing the ownership percentage for remaining shareholders. This practice can boost earnings per share (EPS) since the same earnings are now spread across fewer shares. Share buybacks are typically executed through either open market purchases or tender offers. Why Do Companies Repurchase Their Shares? Companies engage in share buybacks for several reasons, all of which potentially signal confidence in the company’s financial health and stability. Here are some common motivations: Increasing EPS: By reducing the number of outstanding shares, the company’s earnings per share increase. This can make the company’s financials look more attractive to potential investors, even though the net income has not changed. Returning Capital to Shareholders: Share buybacks are an alternative to paying dividends. Some