A credit transaction is one in which the net sale proceeds are larger than the net buy proceeds costthereby bringing money into the account. Contingent Order An order which can be executed only if another event occurs; i. Diagonal Spread Any spread in which the purchased options have a longer maturity than do the written options as well as having different striking prices. Additionally, users can "tag" their friends in videos they add much like the way users can tag their friends in photos, except the location of the friend in the video is not displayed. Bull Spread An option strategy that achieves its maximum potential if the underlying security rises far enough, and has its maximum risk if the security falls far enough. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. January 5, — via www.
When a company purchases shares of its own publicly traded stock or its own bonds in the open market, it's called a buyback. The most common reason a company buys back its stock is to make the stock more attractive to investors by increasing its earnings per share. While the actual earnings stay the same, the earnings per share increase because the number of shares has been reduced.
Companies may also buy back shares to pay for acquisitions that are financed with stock swaps or to make stocks available for employee stock option plans. They may also want to decrease the risk of a hostile takeover by reducing the number of shares for sale, or to discourage short-term trading by driving up the share price. Companies may buy back bonds when they are selling at discount, which is typically the result of rising interest rates.
By paying less than par in the open market, the company is able to reduce the cost of redeeming the bonds when they come due. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.
Dictionary, Encyclopedia and Thesaurus - The Free Iptions. Sign up with one click:. Dictionary Thesaurus Medical Dictionary Legal Dictionary Financial Dictionary. Word of the Day. Buyback The covering of a short position by purchasing a long contractusually resulting from the short sale of a commodity. See: Short coveringstock buyback.
Also used in the context of bonds. The purchase of facebook puts options dictionary bonds by the issuing company at a discount in the open market. Also used in the context of corporate finance. When a firm elects to repurchase some of the shares trading in the market. The act of a publicly-traded company buying its own stocksometimes at a price well above fair market value. Buyback facebook puts options dictionary not intended to stop trade on its stock. Rather, it is an attempt either to reduce the supply of shares in the market with the hope of driving up the share price or to prevent a real or suspected hostile takeover.
If a company becomes its own majority or plurality shareholder, it either makes a hostile takeover impossible or more expensive for the acquiring company. A buyback may occur all at once or gradually over time. See also: Antitakeover measureSelf-tender offer. A company's repurchase of a portion of its own outstanding shares. The purpose of a buyback may be to acquire a block of stock from an investor who is dictionarg to the target firm's management and is considering taking over the firm.
Conversely, a buyback may be an attempt to increase earnings per share by reducing the number of outstanding shares. Regardless of the purpose of a buyback, the result is increased risk for the firm because of reduced equity in the firm's capital structure. Also called Best forex warez password Online Forex Trading System buybackstock repurchase plan.
See also greenmailpartial redemptionself-tender. Case Study Corporate stock buybacks generally consist of a company purchasing its shares in the open market or offering shareholders an above-market price for a certain proportion of their holdings. Either method will result in fewer facebook puts options dictionary shares and, hopefully, help support the market price of the firm's stock.
In some instances companies sell dictinoary put options that commit the companies to buy back shares of their stock at a specified price until a certain date. Companies issuing the puts pocket premiums paid by investors who gain the right to force the company to buy back its own shares. If the stock price remains above the exercise price specified by the puts, option holders choose not to exercise the puts because they have no interest in selling stock at a below-market price.
The unexercised options expire, allowing dkctionary companies to issue additional puts and facebook puts options dictionary additional premiums. In the event puts are exercised, companies purchase shares they intended to purchase in any case. A problem develops when the company's stock price declines dramatically, in which case the company will be forced to repurchase its own shares at a price much higher than the market price. In other words, Dell was being required to pay twice the market price to repurchase its shares because the company had earlier sold put options with strike prices that on the issue date seemed reasonable but later turned out to be substantially higher than the price at which the stock traded in a depressed market.
Unfortunately for Dell, the purchases of its facebook puts options dictionary at inflated prices came at a time when the firm's cash flow faceboom being squeezed by a weak PC market. Please log in or register to use bookmarks. Write what you mean clearly and correctly. Antidilutive effect Antigreenmail antigreenmail provision Anti-Greenmail Provision Bon voyage bonus buy back buyback agreement buyer behaviour Capitalization Change Capitalization Effective Date Cash Flow from Financing Activities cleanup call Corporate repurchase countertrade discounted cash flow Double-dip lease downgrading Dutch auction greenmail.
References in periodicals archive. Under Articleit is a dictlonary for a buyback that the market value of the company's shares is dictionady than the book value. Share buybacks In these cases, the announced buyback value is about Rs 4, Most firms falter on buyback issue Some experts predict share buybacks will slow as dicttionary earnings eat into companies' financial resources.
Record number of firms dictionwry buyback plans in New research by Steven Young and Professor Dennis Oswald finds the growth of buybacks is in part a response to changes in capital taxation. Legal facebokk Finance: Why managers are buying back shares in their own companies It has been argued that the existence of the buyback agreement would increase the lack of marketability facebook puts options dictionary virtue of its existence even ignoring the establishment of the price.
Buy-Sell Agreements In announcing the new buyback''Toyota issued a message'' it is fighting downward pressure on the stock market from the increased liquidation of shareholdings by banks, an auto industry analyst said. Toyota to buy back up to bil. Share Repurchase: To Buy or Not to Buy Gun buybacks are one of a series of common-sense measures we need to reduce the number of Americans killed and wounded in gun crimes, accidents and suicides.
Going Dutch Pjts had earlier announced that it would initiate the buyback program to ensure a balanced debt redemption profile and to increase the price efficiency of secondary market. ECO TURKISH TREASURY HOLDS BUYBACK AUCTION Under racebook buyback contract, a firm regains its investment plus an agreed profit by taking the production of an oil or gasfield once it comes on line. Gov't to change buyback rules. Buyantanshi Open Christian Community Schools.
Buyback Purchase Service Adjustment. Buyer In Ordinary Course. More from Financial Dictionary. The page has not loaded completely and some content and functionality are corrupted. Please reload the page or if you are running ad blocking disable it.
Acronym Definition; CEO: Chief Executive Officer (corporate title) CEO: Center for Effective Organizations: CEO: Catholic Education Office (Australia) CEO: Collegiate. Buyback The covering of a short position by purchasing a long contract, usually resulting from the short sale of a commodity. See: Short covering, stock buyback. Also. Facebook is an American for-profit corporation and an online social media and social networking service based in Menlo Park, California. The Facebook website was.