When a company buy back its own shares it can have a higher EPS that is Earnings Per Share.
Earnings are the revenue that is earned by a company by selling its goods and services to the customer. A company generates revenue and this is the sole reason why a company exists, the expenses incurred by the company and borne by the revenue and it is recommended that the expenses are lower than the revenue generated.
Earnings per share can be boosted easily by buying back company shares, a company can buy back its own shares and this is known as treasury shares. However the shares are then no more in the market and thus the shares held by the investors decrease and so the EPS increase.
Earnings are divided by the number of shares in the market and if it is divided by a lower number the EPS is boosted easily.
Learn more about Earnings at https://brainly.com/question/27226536
#SPJ1
