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 investor may also get a return through a company redemption of shares or dividends of cash.
The company also completed its share redemption programme, announced in Q1 2015, resulting in redemption of shares at a value of SEK65m and share repurchases of SEK140m in accordance with the mandate given at the AGM in May 2015.
304 applies to recast a sale of shares of one controlled (acquired) corporation to an affiliated (acquiring) corporation as a redemption of shares by the acquiring corporation from the controlling (selling) corporation.
Also, in total SEK65m will be paid to the shareholders who have applied for redemption of shares.
According to the company, this decrease in share number is a result of the redemption of shares as a consequence of the implementation of the decision made by the Annual General Meeting on 31 March 2014, regarding a split with compulsory redemption procedure.
At that time, the compulsory redemption of shares was not possible in Germany.