Glossary
- Safety cushion
- Sale in the open market
- Scale for bonds
- Scale for shares
- Schatz future
- SDAX
- Second Quotation Board
- Secondary market
- Secondary purchase
- Sector fund
- Sector index
- Securities
- Securities account
- Securities exchange
- Securities Trading Act
- Seed phase
- Semiannual report (funds)
- Sensitivity (warrants)
- Settlement
- Share
- Share buy-back
- Share price
- Share register
- Shareholder
- Shareholder rights
- Shareholder value
- Shareholders' record
- Shareholder’s right to information
- Sharpe-Ratio
- Shell corporation
- Short position
- Short sale
- SMAX
- SME Growth Market
- SPAC
- Special fund
- Specialised fund
- Specialized fund
- Spot market
- Spread
- Spread certificate
- Squeeze-out
- Standard deviation
- Startup company
- Startup phase
- Steady
- Stock corporation
- Stock cycle
- Stock exchange
- Stock Exchange Act (Börsengesetz)
- Stock exchange monopoly
- Stock index
- Stock market
- Stock market analysis
- Stock market crash
- Stock option
- Stock option plan
- Stock price
- Stock split
- Stop-buy order
- Stop-limit order
- Stop-loss limit
- Stop-loss order
- Stop-market order
- Stop-sell order
- STOXX Europe 50
- STOXX®
- Strike price
- Subscription
- Subscription period
- Subscription rights
- Support buying
- Support Line
- SWAP
- Switch
- Syndicate
- Syndicate bank
- Synthetic bonds
Share buy-back
Repurchase of shares on the stock exchange by the issuing company.
Until some years ago, share buy-backs were allowed in Germany only in certain cases. The German law regulating supervision and transparency in the corporate sector (Gesetz zur Kontrolle und Transparenz im Unternehmensbereich), enacted in May 1998, stipulates that companies can buy back up to 10 percent of their own shares on the stock exchange. The company's shareholders must approve the buy-back at the Annual General Meeting.
Companies buy back their own shares when they wish to invest surplus capital or thwart a hostile takeover. Following a buy-back, the company in question has fewer shares on the market. As a result, the earnings per share increase, which in turn usually causes the share price to rise.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.
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