What is accelerated share repurchase?

What does accelerated share repurchases mean and how is it used? How is it compared with other share repurchases methods and how do investors react to accelerated share repurchases?

Category: Tags: asked December 2, 2012

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Accelerated Share Repurchase is one of the many ways to do a share buyback. The company essentially transfers the risk (or part of it) to an investment bank. The company that wants to buy its shares back, acquires them from an investment bank. The bank gets these shares from its clients. In the end, the bank will try to buy the shares in order to return them to its clients.

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