Treasury stock

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Treasury stock

Common stock that has been repurchased by the company and held in the company's treasury.

Treasury Shares

Stock that a publicly-traded company issues but does not place with investors, or which it has bought back from shareholders. That is, the company holds its treasury shares back until such time as selling them becomes beneficial. Treasury shares have been issued, but they are not considered shares outstanding. Selling treasury shares to the public can be a less expensive way for the company to raise capital because the amount it spent issuing them previously is a sunk cost. Treasury shares are not included in "per share" calculations.

treasury stock

The shares of a firm's stock that have been issued and then repurchased. Treasury stock is not considered in paying dividends, voting, or calculating earnings per share. It may be retired or reissued. See also retirement.

Treasury stock.

Treasury stock is stock that an issuing company repurchases from its shareholders.

The company may choose to repurchase if it has cash available, as an alternative to investing it in expanding the business. Or it may issue bonds to raise the money it needs to repurchase, which changes the company's debt-to-equity ratio.

In most cases, the company offers to pay a premium, or more than the market price, to build its cache of Treasury stock.

Reducing the number of outstanding shares boosts the per-share value of the remaining shares and tends to increase the market price of the stock. That results, in part, because no dividends are paid on Treasury stock and it's not included in earnings-per-share calculations, boosting that ratio.

A company may buy back its stock for a number of other reasons, ranging from preventing a hostile takeover to having shares available if employees exercise their stock options.

It may also choose to resell the shares or use them to meet the demand for shares from holders of convertible securities.

References in periodicals archive ?
Therefore, making the purchase with EGP 1bn requires keeping the first batch of the treasury shares from exceeding 10%.
Also, after cancellation the company does not hold any treasury shares.
7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments ('Executive Bylaws'), which define treasury shares as a company's shares which the issuing company re-purchases or buys back or otherwise makes use of.
The total number of shares outstanding in Swedish Match, including any treasury shares held by Swedish Match, on May 31, 2011 amounted to 213,000,000 equivalent to the same amount of votes.
Following this directed share issue, the number of series A treasury shares in the company is now 323,318.
Oxley Holdings Executive Chairman and CEO Ching Chiat Kwong, said, This placement of our treasury shares attracted a good mixture of prominent investors from institutional funds, corporate and individual investors, which demonstrates the strong confidence investors have in our long-term prospects.
Chapter 11 provides specific instances in which a company may transact with its Treasury Shares, including, without limitation, in the following circumstances: (i) in the event the company desires to reduce its share capital; (ii) in event the company wishes to pay an existing debt obligation; (iii) in the event of a distribution of the Treasury Shares in connection with an employee share option plan; or (iv) in any other event or circumstance determined by the CMA.
is unloading some of its treasury shares to raise at least P250 million in fresh funds for the upgrading and expansion this year of its equipment and terminals.
Following this transfer Vodafone holds 4,134,504,333 of its ordinary shares in treasury and has 49,680,502,956 ordinary shares in issue, excluding treasury shares.
BU) had sold 1,585,559 of its treasury shares to European Bank for Reconstruction and Development (EBRD) on the over-the-counter market under its agreement on July 9, with OTP Bank as investment service provider, OTP said.
The acquisition of Sorin treasury shares will be used in order to service the Group's Stock Grant Plan, which includes the management of the Company, as well as the Chairman and Chief Executive Officer (the "Plan").
Finnish telecommunications company Elisa Oyj (HEL:ELISA) reported on Thursday that 6,894 shares have been transferred from common account to Elisa's treasury shares.