Question

What is the difference between stock issued and stock outstanding? Why might a company choose to repurchase/buy-back shares of its own stock?

Answer 1

Companies issue stocks for raising fund from investors. Stock issued is the shares which has been actually sold by the company while stock outstanding is the shares which has been issued and held in the public's hands.stock outstanding is the difference between stock issued and shares which are brought back by the company.
Stock buyback refers to the repurchase of shares of stock by the company that was issued by them.The main reasons that lead the company to buyback its own shares are

a) Stock buyback will help the companies to consolidate the ownership of the company

b) When there is pessimism in the market, the company uses buyback of stock to increase the value of the equity

c) Buyback of shares will make the company financially healthy thereby attracting more investors.