Share buyback

What is a share buyback?

A share buyback (Swedish: återköp av egna aktier) means that a limited company buys back shares that the company itself has issued. The possibility is restricted by law and applies mainly to public, listed companies – as a general rule, a private limited company may not acquire its own shares.

Why and how?

Buybacks are used, among other things, to return capital to the shareholders or for incentive programs. The repurchased shares can later be cancelled through a cancellation of shares, which means a reduction of share capital. All changes must be recorded in the share ledger.