Repurchase of Shares

In the past two decades, major U.S. corporations have increasingly repurchased significant amounts of their own common shares. The reasons for this development and its implications for the theory of share valuation and public policy, however, have been subject to numerous, and often conflicting, interpretations. The repurchase of shares is not legal under all codes of law; but in the countries where it is legal, it opens up a variety of opportunities for gains for the stockholders.