Please Help?

Question

What are periodic share repurchase?

Answer 1

In the United States and some other countries, corporations can buy back their own stock in a share repurchase, also known as a stock repurchase. Periodically means just that, it can be done over a specific period of time or done monthly, yearly, etc.

A share repurchase distributes cash to existing shareholders in exchange for a fraction of the firm's outstanding equity. That is, cash is exchanged for a reduction in the number of shares outstanding. The firm either retires the shares or keeps them as treasury stock, available for re-issuance.

The most common share repurchase method in the United States is the open-market stock repurchase, representing almost 95% of all repurchases. A firm may or may not announce that it will repurchase some shares in the open market from time to time as market conditions dictate and maintains the option of deciding whether, when, and how much to repurchase. Open market repurchases can span months or even years. There are, however, daily buy-back limits which restrict the amount of stock that can be bought over a particular time interval.

Answer 2

In what context are you reading this?

"Share repurchase" is when a company buys back some of its shares from investors because it thinks the price is too low.