A Share Repurchase Agreement, or SRA, is a contract between a company and its shareholders that details the terms of a stock repurchase. The agreement will outline the number of shares to be bought back, their price, any restrictions or limitations placed on the repurchase and the rights and obligations of both the company and shareholders. By engaging in a share repurchase agreement, the company’s ownership is redistributed amongst its shareholders, allowing them to benefit from increased earnings per share and valuations over time. With an SRA in place, companies can reinvest in their business, strengthen their balance sheets, and provide returns for their existing shareholders.