Stock Buy-Back

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Share Repurchase (Stock Buyback)

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When a public company purchases its own outstanding shares from the open market, reducing the total number of shares available to the public

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Earnings Per Share (EPS)

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A financial metric calculated by dividing a company's total earnings by the number of shares outstanding. Formula: EPS = Total Earnings ÷ Number of Shares

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Shareholders' Equity

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The total value of assets that shareholders would receive if a company paid off all liabilities. Also known as "net worth" or "book value."

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Return on Assets (ROA)

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A financial ratio that shows how much profit a company generates relative to its total assets. Formula: ROA = Net Income ÷ Total Assets

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Dividend

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A portion of company profits paid directly to shareholders, usually in cash on a quarterly basis

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Market Value

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The current price of a company's shares in the stock market, determined by what buyers are willing to pay

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Stock Exchange

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A marketplace where shares of publicly traded companies are bought and sold (like the New York Stock Exchange)

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Share Dilution

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The decrease in existing shareholders' ownership percentage is due to a company issuing new shares

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Treasury Stock

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Shares that a company has repurchased from shareholders and now keeps in its treasury

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Inflation Reduction Act Buyback Tax

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A 1% tax imposed on stock buybacks over $1 million, implemented in 2022