Buy Back

Buy Back Repurchase of convertible or non-convertible debentures or the non-convetible part of partly convertible debenture before the stipulated period, at par or at a discount, by companies or banks. Buy back promises. However, should be lightly taken, as companies devise methods to keep the sellers at bay.

It also means the buying back of its shares by a company from its investors at a price which is satisfactory to the investor. It may occur at the time of a takeover, or when the company is floated publicly.

Buying back may be also resorted to when a corporation wishes to reduce the number of its shares in the market, either to increase the return on the shares till in the market or to eliminate threatening shareholders.

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