Buyback is a mechanism that allows companies to repurchase their stocks from their shareholders. There are several reasons why companies would opt to do this, amongst which are to reduce the cost of capital, ownership consolidation, preserving stock prices, undervaluation, and boosting their key financial ratios. The key principle for buyback is that it must be done with transparency and must be done within a certain period of time. Find out more of our insights about this topic in our Legal Brief publication.
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