Understanding Share Buybacks in Finance

Companies, in this dynamic environment of corporate finance, do many things to increase the wealth of the shareholders appropriately with the capital they are employing. One such practice is the share buyback, also more popularly known as stock repurchase. Over the past several decades, share buybacks have been very widely popular all around the world and have emerged as a necessary component of financial planning by corporations. So, what is it, and why do businesses do it?
This paper will embrace the concept of share buybacks, defining it, outlining its types, its impact, motivation, taxation considerations, advantages and disadvantages, among other details in real-life examples to understand how this practice works.