Share buybacks: when a company buys its own stock back.
With extra cash, a company can pay dividends or buy back its own shares, taking them out of circulation.
That shrinks the share count, so each remaining share owns a slightly bigger slice of the company. Earnings per share can rise even if profits stay flat, since the same earnings are split among fewer shares.
It can signal management thinks the stock is cheap, but it is no guarantee. Buying at a high price wastes cash, and a buyback cannot fix a struggling business.
Not financial advice.
