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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
Also, the company's board holds that merging the shares is in the interest of the company and all of its shareholders and that the company therefore has a weighty financial reason for the reverse share split and the related redemption of shares.
In a press statement, Okada Manila's local representatives said Okada's parent firm, Universal Entertainment Corp., had settled the case with Wynn over the latter's forcible redemption of shares with Wynn agreeing to compensate Universal Entertainment for the stock.
The redemption of shares from mutual fund 1 will generate $1,575 (63 shares x $25 per share) and a capital gain of $315 (63 shares x [$25 - $20] gain per share).
Sporting goods company Amer Sports Oyj (HEL:AMEAS) announced on Wednesday that at the Extraordinary General Meeting, held on 23 January 2019, the meeting approved the resolution to remove Article 11 (titled 'redemption of shares'), concerning a shareholder's obligation to redeem shares, from the Articles of Association of the company.
Section 32(B)(7)(h) of the National Internal Revenue Code states that excluded from the computation of gross income are Gains realized by the investor upon redemption of shares of stock in a mutual fund company as defined in Section 22 (BB) of this Code.
Also, the company's board of directors has proposed a distribution to shareholders of SEK15.00 per share through an annual dividend for 2017 of SEK 7.00 per share and an extra distribution of SEK8.00 per share through mandatory redemption of shares. This compares with an annual dividend of SEK6.8 per share in 2016.
Global Banking News-December 4, 2017--Big 8 Split announces partial redemption of shares
The power business booked a non-recurring net loss during the semester as the gains from the redemption of shares made by its associate companies during the first quarter of 2012 were eaten up by the high fuel cost booked by its geothermal plants and the debt prepayment cost incurred by the parent firm.