> Share buybacks also decrease the company share price Share buybacks reduce shareholders’ equity and the book value of a company since cash is spent but no as

> Share buybacks also decrease the company share price Share buybacks reduce shareholders’ equity and the book value of a company since cash is spent but no asset is gained to offset it. It also raises EPS, since the earnings don’t change but the number of shares (denominator) is lower. This doesn’t necessarily translate into a lower price per share, the supply of shares is reduced and the company generally buys their shares back on the open market, and the volume of their buying is substantial.