Stocks and Shares · Equity specialist topics · lesson 4 of 9 · 6 min read · David Alexander
Buybacks in full
share buyback
A company purchasing and retiring its own shares: the other distribution channel, delivering value by shrinking the denominator rather than mailing cash. Fewer shares over the same earnings lifts per-share figures by arithmetic - which flatters growth optics without any operational change, and is both the buyback's legitimate function and its standing accounting mirage.
This lesson is part of the advanced modules.
Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.