A company agrees to buy back a large quantity of its own stock at a particular price on a particular date from an investment bank. Usually the investment bank does not own all the necessary shares but will acquire them over a period of time. The company sees an immediate reduction in shares outstanding and an increase in earnings per share. However, the company also must account for the obligation associated with the investment bank’s forward contract. If the forward contract is dilutive, the effects must be reflected in earnings per share. ABBRV. ASR.