Buyback of shares:

The company can buy back its own shares from the shareholders in compliance with the corporate laws. Buybacks are carried out to consolidate the holding of the long-term, strategic players in the company. For company to be able to pay for the buyback, it needs to have a very sound financial position.
When to undertake buyback of shares? Buyback of shares increases the price of the outstanding shares as the value gets distributed over fewer shares. It makes the hostile acquisition difficult. Consolidation of share in a few hands increases the relative bargaining power of the holders.