Do share buybacks zoom share prices?

Once you are a company's shareholder, you have a share in its profits. But how does a company distribute these profits among its shareholders? Well, it may give out dividends - a fixed sum of money sent to all shareholders. However, the company may use its profits to reward shareholders differently through something called a buyback. A buyback is a company repurchasing its own shares from its shareholders. It can execute this in the following two ways: It can set a maximum buying price and buy its shares from the open market. In an open market buyback, shareholders are not allowed to participate. However, as the number of outstanding shares goes down, it inc