Business and Personal Finance Dictionary

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• SHARE REPURCHASE
  
  Occurs when a company buys its own shares on the open market. Sometimes, it is done to bolster value, at other times it is executed to acquire shares for option or other incentive plans. When the rationale is the former, it is often considered preferable to use available to "reinvest" in the business than make other less apparently attractive investments or dividend distributions. These activities reduce the number of shares outstanding and therefore increase the earnings per share statistic.
  
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