Active buying by a corporation of its own stock in the marketplace. Reasons for repurchase include putting idle cash to use, raising EPS, creating support for a stock price, increasing internal control (shark repellant), or stock for ESOP or pension plans. Repurchase is subject to rules, such as that buying must be on a zero minus or a minus tick, after the opening and before 3:30 p.m.
Nearby TermsCorporate income fund (CIF) Corporate processing float Corporate repurchase Corporate restructuring Corporate social responsibility
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University