Buyback
/ˈbaɪˌbæk/
Definitions
- (n.) A corporate transaction in which a company repurchases its own shares from shareholders, often to reduce share dilution or to increase share value.
The company's buyback of its shares boosted the stock price.
- (n.) A clause or agreement allowing one party to repurchase an asset or property previously sold, typically under specified conditions.
The contract included a buyback option if the buyer failed to meet obligations.
Forms
- buybacks
Related terms
See also
Commentary
In legal drafting, clarity is crucial to distinguish between a corporate share repurchase and contractual buyback provisions; defining the term contextually avoids ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.