A strategy that a company implements as to its float (and hence, its total shares outstanding) whereby it repurchases its stock in the open market with accumulated cash (monetary assets). It is alternatively used by companies as a flexible way of “retiring” a specific percentage of shareholders, and internally reinvesting with its own money. As it reduces the size of its float (supply of available shares in the open market), this strategy can cause upward price pressure on a company’s stock.
It is also known as a stock buyback.
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