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 its board of directors, acting under its share buyback authorisation, initiated a share buyback programme on 1 May 2019 in order to reduce the company's share capital and to cover obligations under the long-term incentive programme.
The share buyback is being executed by EFG Bank, Zurich, a wholly-owned subsidiary of EFG.
It is expected that the firm will increase its share buyback scheme to GBP2bn next year.
Microsoft said that the quarterly dividend would be raised by 5 cents a share to 0.28 dollars and the new share buyback will be open-ended, unlike the previous scheme, the BBC reports.
However, if conducted properly, a share buyback can deliver shareholder value like no other corporate action or process.
Clearance for the share buyback was secured by agreeing to make one-off payments into the newspaper group's defined benefit pension schemes and the company said it remained committed to funding the remaining deficits over time.
In addition the publisher revealed that its planned dividends and share buybacks in 2006 are equal to approximately 70-80% of its free cash flow.
In some instances, the interest earned on the surplus cash used for the share buyback can be lower than the cost of the dividend on the shares purchased.
The amount of share buybacks by Japanese companies is likely to top 1 trillion yen this year, hitting a record high in part due to companies trying to fight declines in stock prices brought on by the dumping of cross-held shares, an economic think tank said Tuesday.
Share buybacks signal confidence in a company's future
Provider of intelligent audio solutions GN Store Nord A/S (CPH:GN) reported on Tuesday that under its share buyback programme it has accumulated a total of 1,242,000 shares, at an average purchase price of DKK318.07 for a total value of DKK395,041,657.
M2 EQUITYBITES-July 31, 2019-GN Store Nord reports on share buyback programme