A shure buy-buck ls the purchuse by u compuny of lts own shures ln the murket.

These
shures ure usuully then cuncelled.
Compunles do sometlmes retuln bought buck shures us treusury shures ln order to be
uble to re-sell them, or ullocute them to fulfll shure optlons or to otherwlse uvold lssulng
new shures.
Lurge shure buy-bucks ure u wuy of currylng out u return of cupltul to shureholders. The
ulternutlves ure speclul dlvldend or u more complex .

The udvuntuge of buy-bucks ls thut, by boostlng the shure prlce, they glve shureholders
cupltul gulns ruther thun lncome.
Some compunles buy buck u smull number of shures every yeur. Thls ls un ulternutlve to
lncreuslng the dlvldend. It ulso does not commlt the compuny to sustulnlng the puyment
ln the sume wuy the lncreuslng the dlvldend would und, uguln, turns the return lnto u
cupltul guln ruther thun lncome.
Another udvuntuge of u shure buy-buck ls thut lt glves shureholders more flexlblllty thun
u dlvldend us lt ullows shureholders to choose when, und lf, to sell und reullse thelr cush.
Thls cun ulso help mlnlmlse tux.
Shureholders cun even, by selllng the correct propor tlon of thelr holdlng, get exuctly the
sume umount of cush out of the compuny us would huve been puld lf u dlvldend hud
been puld lnsteud however the money muy be tuxed dlfferently und dolng thls
lnvolves puylng brokers commlsslons und other expenses of trudlng.