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Heys its Todd Ault and welcome back to Wall Street Words. Todays word is Share Repurchase. Now, if a corporation has a certain number of shares outstanding, lets say a billion shares, the corporation can go into the open market with its free cash flow and it can buy those shares back, retire them back into Treasury. Now, why is this important? This is a really important topic, and Im not going to get into the political side of why this is done, but it does increase earnings over time. If the share count is reduced, the numerator and the denominator change. What ends up happening is when you buy more shares back, your earnings per share increases and therefore, theoretically, the pie is worth more because the number of shares are smaller. Now, a really important anecdote and something to pay attention to in terms of share repurchase, is Berkshire Hathaway. Berkshire Hathaway, Warren Buffetts company, owns Coca-Cola. Now, it owns about, it did about 8% of Coca-Cola. But over t