Why Do Companies Buy Back Their Own Stock?.
Despite the recent return of volatility, the stock market has
experienced a resounding recovery since the financial crisis of 2008.
Major indexes are near record levels. After such a long, sustained bull
market, one might ask, “Who are the buyers driving this market?” The
answer, perhaps surprisingly, is that listed companies themselves are
among the biggest buyers of stock. To be precise, companies are buying
back their OWN stock via stock buyback (or share repurchase) programs.
This trend has companies buying more of their stock than individuals,
hedge funds, and investment institutions
Learn more in our white paper.