Term of the Day: Share Repurchase

TERM OF THE DAY - OCTOBER 5, 2011 Add Investopedia to Safe Sender List Find Investopedia on Share Repurchase What Does it Mean? A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. Share repurchase is usually an indication that the company's management thinks the shares are undervalued. The company can buy shares directly from the market or offer its shareholder the option to tender their shares directly to the company at a fixed price. Investopedia Says... Because a share repurchase reduces the number of shares outstanding (i.e. supply), it increases earnings per share and tends to elevate the market value of the remaining... Read more » TODAY'S NEWSLETTER IS SPONSORED BY: Slideshow - 10 Tips For The Successful Long-Term Investor These guiding principles will help you avoid common folly during the decision-making process.  View the Slideshow » Special Feature - Financial Planning Financial planning is about more than money, get an inside look at the mindset of a planner, being a client, and finding the right financial advisor. Click here for more. Related Terms Accelerated Share Repurchase - ASR Buyback Earnings per Share - EPS Exempt Transaction Normal Course Issuer Bid See More » Related Links A Breakdown Of Stock Buybacks Brokers: Tips For When To Buy, Sell Or Hold Trademarks Of A Takeover Target See More » Find Term Of The day Useful? Check out our other FREE newsletters! Stock Watch Weekly Forex Weekly News To Use Warren Buffett Watch Investing Basics The Chart Advisor Report Professionals in the Money You are currently subscribed to term-of-the-day as: newsforward@autoforextradingpro.com To unsubscribe or change your email settings, please click here. Copyright © 2011 - All rights reserved. Investopedia ULC.