A way for companies to increase share value by buying the stock back in the open market and detroy or hold it. Decreasing the outstanding shares increases the value of each share. If a company has 100 shares at $1 each then buys and destroys 20 shares, each share would now be worth $1.25 since the market value of the company at $100 will remain unchanged. Another purpose of a share buyback is to prevent other firms from owning a controlling share of the company.

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