“The $18 billion remainder funded two types of stock buybacks: first, $6 billion in ‘open market purchases,’ where the company simply bought its stock from existing investors at prevailing prices; and secondly, two rounds of ‘Accelerated Share Repurchase’ programs.  Under an ASR, a company like Apple buys its shares from an investment bank, which essentially shorts the stock by borrowing shares (typically from its clients) which it then delivers to the company for a fixed, upfront price. Over the term of the ASR agreement, the investment bank then seeks to buy shares to replace those it has borrowed.”

http://appleinsider.com/articles/14/04/25/apple-inc-spent-18b-to-buy-back-317-million-shares-of-aapl-in-march-quarter

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