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Buy back |
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Buy backThe purchase by a listed company of its own shares either in the open market or by tender offers. Companies do it for five reasons:to increase the share priceto rationalise the capital structure - the company believes it can sustain a higher debt-equity ratioto substitute the dividend payouts with share repurchases (because capital gains may be taxed at lower rate than dividend income)to prevent the dilution of earnings caused, for example, by the issue of new shares to meet the exercise of stock option grantsto deploy excess cash flow and return it to shareholdersSimilar MatchesBackward integrationBackward integrationAcquisition by a firm of its suppliers. Backward compatibilityBackward compatibilityCompatibility with earlier versions of software. When referring to Web pages, it means the Web page has been coded so the appearance and functionality of the page will be acceptable when it is viewed on computers with older versions of popular browsers. CashbackCashbackA sales incentive, commonly used on mortgages, which gives customers a cash sum as soon as the deal is signed. Typically linked to heavy redemption fees. Stripped mortgage backed securities (SMBS)Stripped mortgage backed securities (SMBS)Securities that redistribute the cash flows from the underlying generic MBS collateral into the principal and interest components of the MBS to enhance their attractiveness to different groups of investors. BackwardationBackwardationA market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango. Further SuggestionsBack to back financingbackspread Piggyback registration "Back up the truck" Payback back taxes Pullback Commercial Mortgage Backed Securities Tax loss carryback, carryforward clawback Piggybacking Back testing Backward bending back to back loan Kickback Back taxes Reachback back office Death backed bonds Tax clawback agreement Lehman Brothers Mortgage Backed Securities Index Cashback mortgages Lookback option back end load Backward linkage |
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