One way that companies increase shareholder value is through stock buybacks. This is a process in which a company reduces the number of outstanding shares available to investors and increases the company’s earnings per share. Investors will hear the term share repurchases used synonymously with stock buybacks.  Stock buybacks are one action that a company takes when it believes its stock is undervalued. Generally, stock prices rise after buybacks because investors become more bullish on the stock’s prospect ...