Explained: What is share buyback and why do companies go for it?

Share buyback is a corporate action in which the company buys back the shares from its existing shareholders either via a tender offer route or through the open market offer under Section 68 of the Companies Act 1968. The buyback of shares is out of companies' free reserves or the securities premium account.

Explained: What is share buyback and why do
why do companies buy back shares, and how is it useful to investors? image- Pexels

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