A buyback is a corporate action that occurs when a company purchases its shareholders' shares. Companies typically buy back shares at a rate that is higher than the market price. Companies can repurchase shares from their shareholders using either of the following methods: 

Tender offer: When a company makes an offer to buy back its own shares at a specific price (offer price), shareholders can tender, or sell their shares. 

Open-market offer: The company can repurchase its stock by actively purchasing from sellers on the exchange. The buyback period is specified in the buyback offer and can last for several months to ensure that no substantial price movement occurs as a result of the buying activity.