What Is a Stock Buyback
The gist
A stock buyback is when a company buys its own shares from the market to reduce the number of shares available.
Explain like I'm 5
Imagine a company is like a big pizza cut into slices (shares). When the company buys back some slices, there are fewer slices left for everyone else, making each slice a bit more valuable.
Big picture
Companies do buybacks to try to increase the value of remaining shares and show confidence in their business, which can affect investors and the stock market overall.