Share cancellation
Extinguishing repurchased shares: share capital is reduced and the number outstanding falls permanently.
How to read the number
Only cancellation makes a buyback a definitive increase in everyone else's claim on profit; while the block sits on the balance sheet it can be sold back into the market.
When the metric lies
A buyback without cancellation is reversible. Repurchased shares often end up in incentive plans or are resold later, which makes the effect on ownership temporary.
Also known as: share cancellation