Share repurchase program

A share repurchase program refers to the process in which a company buys back its own shares from the existing shareholders. This initiative is usually undertaken to reduce the number of available shares in the open market, which often leads to an increase in the value of the remaining shares. By repurchasing shares, a company demonstrates confidence in its financial health and future prospects. Furthermore, it can be an effective way of returning capital to shareholders, as opposed to paying dividends. Share repurchase programs can provide advantages such as earnings per share (EPS) growth, enhanced shareholder value, and better control over the company's capital structure.