A buyback of securities, often referred to as a share repurchase, is a corporate action where a company repurchases its own shares from the open market or existing shareholders. This can be done to return surplus capital to shareholders, boost the stock price, or prevent hostile takeovers by reducing the number of outstanding shares. Buybacks can be executed through open market purchases or tender offers, and they typically require regulatory approvals and adherence to securities laws. The repurchased shares can be retired or held as treasury stock, reducing the overall number of outstanding shares. Investors often view buybacks positively as they can enhance shareholder value, but their impact on a company’s financial health and long-term growth prospects must be carefully considered in the broader corporate strategy.