Treasury stock


Also found in: Dictionary, Thesaurus, Legal, Acronyms, Wikipedia.

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 ?
- Singapore is far more flexible about how treasury stocks may be used, including allowing such stocks to be transferred as payment, or what the law calls consideration, for acquiring shares or assets of a company or person;
As described below, applying the treasury stock method to RSUs could be antidilutive if, due to unrecognized compensation and windfall tax profits, the hypothetical repurchase of shares exceeds the number of RSU shares to be exercised.
Another reason for purchasing treasury stock involves a firm's desire to maintain a target capital structure.
A ruling Liberal Democratic Party panel tasked to map out measures to prevent a further fall in share prices agreed earlier in the day to contemplate treasury stock.
The method used to determine the potential dilution from stock options and/or warrants is referred to as the "Treasury Stock" method.
The Bank of England said that in accordance with the terms of the prospectus dated 19 December 1986, that the rate of interest payable on the 2 1/2% Index-Linked Treasury Stock 2024 for the interest payment due on 17 July 2016 will be GBP3.3250 per GBP100 nominal of stock.
Shin Kong Insurance also announced yesterday to spend up to NT$1.775 billion to buy back 10,000,000 shares of treasury stock at the price range of NT$11.35-30.9.
Tokyo, Nov 4, 2010 - (JCN Newswire) - CyberAgent announced that in our board meeting held on November 4, 2010, a resolution was passed on items relating to acquirement of treasury stock, in accordance with Article 156 of the Companies Act of Japan, applied pursuant to Article 165, paragraph 3 of that act.
Treasury stock holdings as of Tuesday stand as 2.1bn issued shares including the treasury stock of 5,156,200 shares.
AT least six companies are in a position to raise funds through the sale of treasury stock when in need, as done by Reliance Industries Ltd ( RIL) and JP Associates ( JPA) in the recent past.
"The CMA is aware of some attempts to manipulate the market through treasury stock buying offers and that is why the CMA set strict regulations to deal with such practices," said Hesham Ibrahim, chief of the staff at CMA.
group will as early as March 2006 retire in one swoop all the treasury stock it will own, a Japanese business daily reported Saturday, quoting Ito-Yokado Chairman Toshifumi Suzuki.