Treasury Stock

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Treasury Stock

Corporate stock that is issued, completely paid for, and reacquired by the corporation at a later point in time.

Treasury stock or shares may be purchased by the corporation, or reacquired through donation, Forfeiture, or some other method. It is then regarded as the Personal Property of the corporation and part of its assets. The corporation can sell the stock for cash or credit, for par value or market value, or upon any terms that it could be sold by a stockholder. Shares that the corporation has not issued in spite of its authority to do so are ordinarily not regarded as treasury shares but are merely unissued shares.

treasury stock

n. stock of a private corporation which was issued and then bought back by the corporation or otherwise reacquired by the corporation. Treasury stock held by a corporation earns dividends for the corporation but the corporation may not cast votes in decision-making the way a regular shareholder would be entitled. (See: stock, share)

References in periodicals archive ?
The company said the purpose of this share buyback is to reduce the bank's share capital with the shares purchased under the programme.
In order to avail the Buyback option, users can follow these simple steps:
To initiate the buyback process on the OnePlus India website, users need to first select the city, then the brand of smartphone, example Google, select the smartphone series (Pixel for example), choose the correct model number, and you get the current MRP of the smartphone along with the best buyback amount.
While many companies will opt to increase dividend payouts, increase capital expenditures and pay down debt, some will respond by increasing stock buybacks.
The dates of the Buyback offer will be mentioned in the public announcement.
32, which is the same price before the buyback, therefore no value created.
This finding by Jensen is supported by Ikenberry, Lakonishok and Vermaelen (1995), who find a drop in firm value of the repurchasing firm in the week following a buyback.
Jensen analysis says, when companies produce considerable amount of funds which is not competently devoted due to less cost-effective opportunities for the company, extra money is returned to the share holders when company buyback shares.
The buyback of shares has only propped up the markets further.
The banking company said that it has completed a buyback of 400,000 shares of its common stock.
com/topics/detail/238/iphone/) iPhone maker to add another $50 billion to its stock buyback plan.
What is being cited as an effort by RIL to invest in itself; RIL's share buyback programme is an attempt to revive the company's stock value and by reducing the float, the conglomerate seeks to increase its earnings per share, given its stocks have been trading below their intrinsic value for quite some time now.