| Term | Meaning |
|---|---|
| Accelerated share repurchase (ASR) | A buyback executed through a bank that delivers most of the shares immediately and covers its position in the market over the following months. |
| Authorisation | Board or shareholder approval to repurchase up to a stated amount or number of shares. A ceiling, not a commitment. |
| Blackout period | Weeks before results when insiders may not trade. Companies continue buybacks through pre-set 10b5-1 plans or MAR-compliant mandates. |
| Buyback yield | Cash spent on repurchases over twelve months divided by market capitalisation. |
| Cancellation | Legally retiring repurchased shares so they cease to exist. Reduces authorised and issued share capital. |
| Dividend withholding tax | Tax a company must deduct from dividends before paying shareholders. 15% in the Netherlands. |
| Dutch auction tender | A tender offer with a price range in which holders name their price and the company pays the lowest clearing price to all accepted sellers. |
| Excise tax on buybacks | A 1% US federal tax on the net value of shares repurchased by listed companies, in force since 2023. |
| Free cash flow (FCF) | Operating cash flow minus capital expenditure. The cash available for dividends, buybacks and debt reduction. |
| Gross repurchases | Total cash spent buying shares, before subtracting shares issued. |
| Inkoopfaciliteit | The Dutch dividend-withholding-tax exemption that lets listed companies repurchase shares without triggering the 15% tax, within limits. |
| Market Abuse Regulation (MAR) | EU rules that, among other things, define the safe harbour conditions for buyback programmes. |
| Net repurchases | Repurchases minus the value of shares issued, mainly to employees. The figure that drives the share count. |
| Open-market repurchase | Buying shares on the exchange through a broker over time, like any other investor. |
| Payout ratio | Share of profit or free cash flow returned to shareholders through dividends and buybacks. |
| Rule 10b-18 | The US SEC safe harbour that protects companies from manipulation claims if they follow volume, timing, price and single-broker conditions. |
| Shareholder yield | Buyback yield plus dividend yield: total cash returned relative to market value. |
| Shares outstanding | Shares held by investors, excluding those the company has retired. The number that buybacks reduce. |
| Stock-based compensation (SBC) | Pay delivered in shares or options. Creates new shares that offset buybacks. |
| Tender offer | A public invitation to all shareholders to sell shares to the company at a stated price or price range for a limited time. |
| Total shareholder return (TSR) | Share price change plus dividends over a period. The outcome buybacks are supposed to improve. |
| Treasury shares | Repurchased shares the company keeps rather than cancels, often for employee plans or acquisitions. |
| TTM (trailing twelve months) | The sum of the latest four reported quarters. Our default period for repurchases. |
This guide is general information, not investment or tax advice. Figures quoted from this site were correct when the guide was last updated and may have changed; the live numbers are in the rankings.