Buyback
Market basicsA company repurchasing its own shares, reducing the share count.
In plain terms
Value-creating when the stock is cheap, value-destroying when it is expensive.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 6 terms
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Acceptance ratio
Market basicsThe proportion of tendered shares a company actually accepts in a buyback.
In plain terms
This, not the premium, decides what you earn. A 20% premium at 15% acceptance is a 3% return.
Financing cash flow
AccountingAlso called: Cash flow from financing
The cash flow bucket covering borrowing and repayment, share issues and buybacks, and dividends paid.
In plain terms
Read it alongside the other two. Negative operating cash flow with a large positive here describes a company kept alive by fresh borrowing rather than by trading.
Special situation
Fundamental analysisA corporate event — demerger, buyback tender, delisting offer, rights issue or index change — that creates a mechanical mispricing independent of business quality.
In plain terms
The terms are published, the timeline is fixed and the outcome is largely arithmetic. They persist because they are boring, small and time-limited, which keeps large funds away.
EPS
AccountingEarnings per share — net profit divided by shares outstanding.
In plain terms
Can rise from buybacks alone. Always check net profit rose too.
Offer for sale
Market basicsAlso called: OFS
A promoter or large holder selling part of their stake to the public through the exchange.
In plain terms
The mirror image of a buyback — here the owner is reducing their stake, which deserves a question.