What is a share buyback?

If the Paytm board approves the buyback, it will become the 51st company to announce a stock repurchase agreement in 2022. But what is a share buyback? Why does a company undertake it?

Rex Cano New Delhi

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1 min read Last Updated : Dec 13 2022 | 11:52 AM IST

Today the markets will take cues from their global peers. Among stocks, Paytm will be keenly watched as the company’s board is scheduled to meet later today and discuss a buyback proposal. If the board approves the buyback, Paytm will become the 51st company to announce a stock repurchase agreement in 2022. But what is a share buyback, and why does a company undertake it?