What is a stock buyback? Yahoo Finance’s Madison Mills breaks down what investors need to know. A stock buyback refers to a company repurchasing some of the stock they issued from shareholders, which reduces the amount of shares outstanding in the market. Some critics say buybacks are just a way for companies to artificially inflate their stock price. Like dividends, buybacks return company profits to shareholders. But critically, investors must pay capital gains taxes on dividends, while buybacks do not trigger this tax liability. #yahoofinance #finance #news #youtubeshorts #youtube #shorts #shortsvideo #investingforbeginners #investing #stockmarket #stocks #stockoptions #stockoptionstrading #explained #2024shorts
