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With the help of the Stock buybacks, which is known as the share repurchases,are known as the financial strategy which the companies buy back their own shares from the open market, hence in that order it reduces the outstanding shares, which in the other hand increases the value of remaining shares that is after boosting earnings per share known as (EPS).
Hence with the the companies making use of the buybacks signal confidence in their financial health which also helps in showing investors e stock which are undervalued, also in some cases it can be a tax-efficient way in order to return excess cash which shareholders compared to that of the dividends, hence with the executed, buybacks hives shareholder interests and with excessive reliance on this strategy, can also expose companies towards the financial risks which has to do with the economic downturns.
Am @kingworld-line
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