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FC MARKETS

Markets, money and the economy, explained for American investors

Topic

Stock Buybacks

2 articles

Stocks

Stock Buybacks Explained: How Repurchases Work and What They Signal

When a company buys back its own shares, the share count falls and each remaining share owns a bigger slice of the business. This explainer covers how buybacks work, why companies use them, how they affect earnings per share, the rules and tax that apply, and how to read them critically.

6 min read

Stocks

How Stock Dividends Work: Yield, Ex-Dividend Dates, DRIPs and Taxes

Dividends are cash a company pays its shareholders, but the details matter: which date decides who gets paid, why a high yield can be a warning sign, how payout ratios show whether a dividend is sustainable, what reinvestment plans do, and how the IRS taxes qualified and ordinary dividends.

6 min read