With shareholders´ approval, a company may repurchase a certain portion of its own shares in the stock market. The shares may be held in the form of Treasury Stock (the company´s holdings of own shares) for cancellation or use at a later date. Repurchase of shares could have a positive influence on the key ratio "Earnings per share," since the company´s profits are divided by a lower number of shares outstanding. According to the Board of Swedish Match, a more efficient balance sheet is achieved, and it is possible to transfer the value to shareholders, by using a portion of the distributable earnings for repurchase (in addition to dividend).
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