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 investor relations, 'equity repurchase' is used as a strategy to manage perceptions and return value to shareholders. An investor relations manager might say, 'Our equity repurchase program demonstrates our commitment to returning capital to shareholders and managing our equity efficiently.'

Practice Scenarios

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.

Academics

Scenario:

Consider the impact of different financial maneuvers on a company's financial health. Any suggestions?

Response:

We could study the impact of equity repurchase on firm value and financial structure.