Smart Finance

Term

Share buyback

When a company uses its own cash to buy its shares in the market. With fewer shares left, each remaining one owns a slightly bigger slice of the business. It is another way, besides dividends, to return money to shareholders.

In pesos: If a company split into 100 shares buys back 10, each of the 90 left owns 1/90 of the business instead of 1/100: your slice grew without you buying anything.

Where to go deeper

2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.