This is the method of buying back a firm's shares whereby the firm acquires the shares on the market, often buying a relatively small number of shares every day, at the going market price.

Question

Quizplus · Accepted Answer

The method described is specifically an on-market buyback, as it involves the firm buying back its own shares on the stock market. A share split involves increasing the number of shares outstanding while reducing the price per share, and a share buyback can occur either on or off the market. However, the description of buying a relatively small number of shares every day at the current market price indicates an on-market buyback.

This Is the Method of Buying Back a Firm's Shares