Purchase by the company of its own shares is known popularly as ........

Accountancy Company Final Accounts

Purchase by the company of its own shares is known popularly as _______.

utilisation of shares

buy back of shares

sweat equity shares

winding up of shares

- Option 1: Utilisation of shares

- This term is not commonly used in relation to purchasing a company's own shares.

- It generally refers to how shares are used or allocated, not specifically to buying them back.

- Option 2: Buy back of shares

- Correct Answer

- When a company buys its own outstanding shares to reduce the number of shares available on the open market.

- Companies do this to invest in themselves or improve share value.

- Option 3: Sweat equity shares

- These are shares given to employees or directors based on their work or contribution to the company.

- Not related to the company purchasing its shares.

- Option 4: Winding up of shares

- This involves the process of dissolving a company, not buying its own shares.

- Typically occurs during the closure of a business.

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