Skip to main content

Share buy-back

Describes an investment company buying its own shares and reducing the number of shares in existence.

Describes an investment company buying its own shares and reducing the number of shares in existence.

Share buy-backs can be used to return money to shareholders, but are also often used to tackle the company’s discount. Discounts may reflect an imbalance between the demand for shares and the number of shares in existence. The hope is that, by reducing the number of shares in existence, the buy-back will help to prevent the discount widening or even reduce it.

Main