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TERM OF THE DAY

A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market. Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to prevent other shareholders from taking a controlling stake.

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A share repurchase is when a company buys back its own shares from the marketplace, which increases the demand for the shares and the price. Read more

Controlling Interest: What It Is Plus Advantages, Examples

A controlling interest is when a shareholder, or a group acting in kind, holds a majority of a company's voting stock. Read more

Earnings Per Share (EPS): What It Means and How to Calculate It

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock, serving as a profitability indicator. Read more

P/E Ratio Definition: Price-to-Earnings Ratio Formula and Examples

The price-to-earnings (P/E) ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings. Read more

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