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hello everyone youre watching saheb Academy if you like our videos then please subscribe to our Channel and also hit the bell again for the regular updates and also follow us on Instagram so have Academy now lets go to the video hi everyone in this video we are going to start this new chapter of corporate accounting that is buyback of shares and this chapter is a very simple chapter so first lets understand the meaning of buyback of shares see here buy bag of shares means purchase of its own shares by a company thats it the company will purchase its own shares yeah and cancel them off that is called buyback of ships just buying the shares back from the public now why does the company go for buyback of shares you have to understand that yes the reason why the companies go for buyback of shares is because they have lots and lots of cash surplus cash when the companies have surplus cash what they do is they either pay high dividends to their shareholders or the investment loss of secu