The document discusses stock buybacks, which is when a company repurchases its own shares from the marketplace. This reduces the number of outstanding shares and can indicate management believes the shares are undervalued. A company can perform open market purchases, tender offers, or targeted repurchases. Stock buybacks are sometimes preferred over dividends for flexibility, to offset stock dilution, and when management believes the stock is temporarily undervalued. The document outlines various methods, restrictions, factors driving and steps involved in companies performing stock buybacks.