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 ?
Upon redemption of shares in Swedish limited liability companies the amount payable to foreign shareholders is normally subject to withholding tax.
The amount to be applied to the partial redemption of shares comprises the monies from the realisation of the Company's investments received up to and including 30 June 2015 pursuant to the winding down of the Company.
Share split and automatic redemption of shares (item 19)
The proposed mergers would offer the Funds' common shareholders a variety of benefits, including: (1) the opportunity to invest in an established open-end fund that, like the corresponding closed-end Fund, pursues a tax-exempt investment strategy; (2) elimination of the discount to net asset value at which shares of the Funds have traded historically; (3) the ability to redeem shares at their net asset value on a daily basis; and (4) choice of timing of any recognition of taxable gain or loss occasioned by the redemption of shares.
Redemption of shares will only be made available to those able to produce valid stock certificates.
The Depository Trust Company ("DTC"), the holder of record of the shares, will determine how the partial redemption of shares will be allocated among each participant broker-dealer account.
Assuming redemption of shares at the end of the periods indicated, investment performance would be 34.
Within two weeks, the fund may request redemption of shares ReFlow holds, for which ReFlow expects to request in-kind shares of equal value rather than cash.
This announcement by GM constitutes notice of the redemption of shares of
Redemption program In accordance with the proposal of the Board of Directors, the Munters Annual General Meeting resolved on a share split 4:1 in combination with an automatic redemption of shares, according to which the shareholders will receive three new shares and one redemption share.
STOCKHOLM, Sweden -- The Extraordinary General Meeting, which was held in Stockholm on December 12, 2006, decided in accordance with the Board of Directors' proposal on redemption of shares.