The Buyback and Tender are very important part of Corporate Finance, part of how a company manages shareholder value and its capital structure. A financial move, it is when a company buys its own shares available in the marketplace, giving positive signs about its financial health and addressing share-holder value. A share buyback, specifically an on-market buyback might be supplemented by a tender offer, where the company invites existing shareholders to tender some or all of their shares within a time period and at a fixed price. It gives the shareholders the ability to sell their shares back to the company at some predetermined price you never know, maybe a higher price so you can profit! The primary reason that a Buyback is initiated, is simply due to the fact that it either allows the company to more cheaply use their excess cash option for reinvestment in the company or returning capital to shareholders when management believes that the stock might be currently underpriced.