Tagasiostu

Tagasiostu is the Estonian term for repurchase and is used to describe related arrangements in finance and business. It broadly covers two main forms: repurchase agreements in financial markets and corporate buybacks where a company buys back its own shares.

In a repurchase agreement (tagasiostuleping), one party sells securities to another with an agreement to repurchase them later at a predetermined price. The difference between the selling price and the repurchase price reflects the implicit interest for providing cash. Repo transactions are typically short-term and secured by the underlying securities, making them a common liquidity tool among banks, asset managers, and dealers.

In a corporate context, a buyback program (aktsiate tagasiost or tagasiostu) refers to a company purchasing its own shares from the market or through private transactions. Motives include returning capital to shareholders, signaling confidence, improving financial metrics such as earnings per share, and optimizing capital structure. Buybacks are subject to regulatory rules and disclosure requirements that vary by jurisdiction.

Impact and considerations can include effects on cash reserves and leverage, potential implications for market liquidity and share price, and governance concerns regarding the timing and purpose of the repurchases. While buybacks can support shareholder value, they are sometimes controversial if funded by debt or executed without broad shareholder support. Related terms include stock buyback, repurchase agreement, and treasury shares.