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 ?
The AGM approved the Board's proposed imposition of an automatic program for redemption of shares involving a split, redemption of shares and an issue of bonus shares.
The amendments were made for the purposes of adapting the articles of association to the new provisions in the Swedish Companies Act that entered into force 1 January 2011, adapting the articles of association to the implemented reorganisation and to enable the board's proposal of redemption of shares.
The Board of Directors proposes that the Annual General Meeting resolves to amend the Articles of Association as set forth below, inter alia for the purposes of adapting the Articles of Association to the new provisions in the Swedish Companies Act that entered into force 1 January 2011, adapting the Articles of Association to the implemented reorganisation and to enable the Board's proposal for redemption of shares.
Since the general meeting is to vote upon the board of directors' proposal regarding redemption of shares, and we have seen that the market's expectations are significantly lower than what we will be reporting, we believe that it is appropriate, already now, to publish provisional results for the first quarter," said Anders Ullberg, CEO of SSAB.
b) resolution to reduce share capital through an automatic redemption of shares, and
Finnish real estate investment company Polar Real Estate Corporation said on Monday (29 March) that it had received notification from the German real estate company IVG Immobiliere SAS regarding the redemption of shares in Polar.
The board's proposition to make a share split, redemption of shares and a corresponding "bonus issue" increase of the share capital 18.
Sweco AB (STO:SWECA) announced on Friday a change in the share capital and number of shares and votes in the company as a result of a new share issue, conversion and redemption of shares.
o For the 2010 fiscal year, the Board of Directors intend to propose to the annual shareholders meeting an ordinary dividend of SEK 3 per share and an extraordinary transfer corresponding to SEK 30 per share by a redemption of shares.
Major management services include the initial formation of a mutual fund, sales and redemption of shares, investment advisory services, and day-to-day management.
00 per share through a mandatory redemption of shares.
If not earlier converted, the redemption of shares and payment will be made in accordance with the terms specified in the redemption notices sent to holders.