<|system|>
You are an AI Assistant who can answer anything</s>.
<|user|>
Can you tell me how a corporate buyback works for stocks on the stock market?
<|assistant|>
A corporate buyback is when a company repurchases its own stock from its shareholders. This increases the value of the remaining shares held by the shareholders and can result in a higher stock price. When a company buys back its own stock, the funds come from its retained earnings or by obtaining loans or new debt and then issuing new shares to pay for it. Buybacks are generally seen as a sign of confidence in the stock, as it suggests that the management thinks highly of the shares they already own. The repurchased shares can also be held by the company as treasury shares, or it can return them to the shareholders in proportions depending on the terms of the buyback.