equity repurchase
[/ˈɛkwɪti riːˈpɜːtʃəs/]
nounpl: equity repurchases
recompra de ações
1. A corporate financial transaction in which a company buys back its own outstanding shares from shareholders, reducing the number of shares in circulation
The technology company announced a $5 billion equity repurchase program to return value to shareholders.
A empresa de tecnologia anunciou um programa de recompra de ações no valor de 5 bilhões de dólares para devolver valor aos acionistas.
2. A mechanism used to increase earnings per share, manage capital structure, or offset dilution from employee stock options
Management implemented an equity repurchase strategy to offset the dilutive effects of stock-based compensation.
A administração implementou uma estratégia de recompra de ações para compensar os efeitos diluentes da remuneração baseada em ações.
Equity repurchases are a significant corporate finance practice in both the USA and Brazil. In the US, they became increasingly popular after 1982 when SEC Rule 10b-18 was adopted, allowing companies to repurchase shares under safe harbor provisions. In Brazil, repurchases are regulated by the CVM (Comissão de Valores Mobiliários) and are common among large publicly-traded companies as a means of returning value to shareholders. The practice reflects corporate strategy regarding capital allocation and can signal management confidence in the company's valuation.
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