A buyback program is a strategy used by companies to repurchase their own shares from the market. This can help increase the value of remaining shares by reducing the total number of shares available, which can lead to higher earnings per share. Companies often initiate buybacks when they believe their stock is undervalued or to return excess cash to shareholders. These programs can also signal confidence in the company's future prospects, as management is willing to invest in its own stock. However, buyback programs can be controversial, as critics argue that funds used for buybacks could be better spent on growth initiatives or employee compensation.