Can you tell me how a corporate buyback works for stocks on the stock market?
Can you tell me how a corporate buyback works for stocks on the stock market?
user
Yes. A corporate stock buyback is when a company buys its own outstanding shares on the open market, usually with the intention of reducing the number of shares circualting and increasing the value of those remaining. The company identifies an amount of funds that it is able to allocate to share repurchase and then execute trades to purchase its own shares on the open market through a broker. 
The buyback enhances shareholder value since it reduces the number of available shares, which increasesthe demand for them and in turn lifts the price per share. If the buyback lasts for a period more than six months, shareholders can benefit from accumulative dividend payout if they hold their share during that period.
assistant
Can you tell me how a corporate buyback works for stocks on the stock market?
user
When a corporation wants to buy back its own stocks, it is making a corporate buyback. This allows the company to reduce the number of shares that are circualting and also encourages stock price appreciation. The company repurchases the shares from current shareholders on the open market and surrenders them back to their share reserve pool for further redistribution among existing shareholders.
assistant