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 ?
It is expected that under the terms of the Plans the Treasury Shares will be conveyed to employees at a number of times during the period January 2014 to February 2015.
Pursuant to a report of its Compensation Committee, the Board of Directors of KWG has also granted options to purchase 7,339,000 treasury shares under the provisions of the Company's Stock Option incentive plan, including 6,050,000 to officers and directors.
Pursuant to Danish law, Olicom is required to notify the Copenhagen Stock Exchange when the Company's holding of treasury shares passes a threshold of 5 percent of its share capital.
As a consequence of recent exercises of options to purchase Olicom common shares, Olicom is today notifying the Copenhagen Stock Exchange that the Company's ownership of treasury shares has decreased to less than 5 percent of its share capital.
Regal has agreed with International Northland, North Cape Breton and Highland Range that it will purchase International Northland's rights and entitlements under its agreement with Highland Range for 500,000 shares of Regal, a 1 percent net smelter royalty ("NSR") in the Cape Breton Island properties held by both Highland Range and North Cape Breton and the assumption of all further obligations of International Northland under the agreement, including the potential issue of 5,000,000 treasury shares.
with respect to the acquisition of a 65 percent interest in voting and participating treasury shares of Tripap Inc.
acquires 1,000,000 Class A Subordinate Voting Treasury Shares of Uniforet Inc.
5,230 Treasury shares from the Treasury Shares Account to participants