Few reasons:
The company may not want to flood the market. This decreases the value of the stock.
The company may not want its stocks to be bought by a competitor.
The company believes the stock price will rise, so they buy the stocks back and sell them when the prices have gone up.
Famous_Campaign9329 t1_j6kuxr7 wrote
Reply to ELI5: What does it mean when a company buys back stocks and why is it frowned upon? by lilly_kilgore
Few reasons: The company may not want to flood the market. This decreases the value of the stock. The company may not want its stocks to be bought by a competitor. The company believes the stock price will rise, so they buy the stocks back and sell them when the prices have gone up.