There are a number of ways in which a company can return wealth to its shareholders. Although stock price appreciation and dividends are the two most common ways of doing this, stock buy back is another way of rewarding investors and on the other hand,companies also seize the opportunity to reduce their share outstanding in other to reduce pressure on the company in respect of future payments of dividend.

Let me shed!!!!!!!!!!!!!!1
Share buy back is a company buying back its shares from the market place at premium in most cases, repurchased shares are absorbed by the company, this will lead to a reduction in the number of outstanding shares of the company and this will indirectly increase the stake of every sahreholder.


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