Share buyback (Aktienrückkauf)
A company buys back its own shares on the stock market, returning money to shareholders.
In short
As of 8 October 2026In a share buyback, a company buys back its own shares on the exchange and often cancels them. Profit is then spread over fewer shares, so earnings per share rise. In Germany the board needs authorisation from the annual general meeting, usually for up to 10 % of share capital. Shareholders only pay tax when they sell their own shares.
In a share buyback, a company buys its own shares on the exchange and often cancels them afterwards. Profit is then spread over fewer shares, so earnings per share rise. Besides the dividend, it is the second way to return money to shareholders.
In Germany the board needs authorisation from the annual general meeting, usually for up to 10 % of share capital (§ 71 AktG). Ideally the buyback is funded from free cash flow. For you there is a tax advantage: tax is only due when you sell your own shares.
Example: a company with 100 million shares buys back and cancels 5 million. Each remaining share now represents a slightly larger slice of the company. The basics are in what is a stock?
Related terms
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.