Treasury stock

(redirected from Treasury share)
Also found in: Dictionary, Thesaurus, Legal.

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 ?
Head of Technical Analysis in Al-Tawfik Company for Brokerage Haitham Abd El-Samii said: "EFG's announcement of purchasing the treasury shares at EGP 11.5 per share will reset its offers for the next three sessions.
Treasury shares represent 6.28% of the total number of shares.
On the page Treasury shares year 2019 is available the weekly full information including daily details of 2019 share buyback programme.
In August 2015, the Senate Standing Committee on Finance approved amendments to section 95-A of the Companies Ordinance 1984, which sought to allow listed companies to purchase their own shares and hold them as treasury shares.
287 of 2016 Promulgating the Executive Regulation of Law No.1 of 2016 Promulgating the Companies Law ('Companies Law'), the Kuwaiti legislator has defined treasury shares as: "the shares acquired and resold by the company and used on its issued shares traded in the stock exchange within the limit of the decreed percentage".
It also includes restrictions, rights and privileges of the treasury shares, limitation on treasury shares, compliance with the applicable international financial reporting standards relating to the treasury shares, disposal of treasury shares and maintaining record thereof.
All in all, the treasury shares account for 1.36 percent of the Bank's registered capital.
Aboitiz Equity Ventures earlier raised P594 million by selling an initial tranche of treasury shares back to the open market in September 2014.
The shares were previously held as treasury shares.
22 February 2011 - German online services provider United Internet AG (ETR:UTDI) announced today that it has decided to cancel a total of 15m treasury shares purchased in the course of share buyback programmes.
Following this transaction the company now holds 4,000,000 ordinary shares in treasury and has 195,600,000 ordinary shares in issue, excluding treasury shares.
ENPNewswire-August 29, 2019--Eni - Report on the purchase of treasury shares during the period from August 19 to August 23, 2019