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How does the system of buybacks work?

Updated: 8/20/2019
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10y ago

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The buyback system is offered in a variety of commercial settings. Students have textbook buyback programs in college. Public corporations also utilize this system as do the markets for computer and technology products. Basically, a percentage of a product's initial value is paid back when the buyer wishes to sell the product after it usefulness ends. With stocks, a buyback might offer a premium to encourage the owner to sell stock back to a corporation or other investment concern after profit is realized. There are unlimited ways a buyback system can operate depending on the product and demand for it.

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