equity-repurchase

Vocabulary Word

Definition

'Equity repurchase' is when a company buys its own shares from shareholders. It's like a company buying back pieces of its ownership from investors.

Examples in Different Contexts

In corporate strategy, 'equity repurchase' can be a tool for adjusting the capital structure and optimizing the company's balance sheet. A corporate strategist might note, 'By implementing equity repurchase, we aim to optimize our capital allocation and enhance long-term shareholder returns.'

Practice Scenarios

Tech

Scenario:

We need a strategy to boost confidence in our company's future, particularly among our investors.

Response:

Initiating an equity repurchase could send a strong message of confidence to our investors.

Business

Scenario:

We need to reduce our debt levels while preserving the firm's control in shareholders' hands.

Response:

Perhaps implementing an equity repurchase program would allow us to achieve that goal.