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 ?
We see returns to shareholders as consisting of "increases in medium- to long-term share values + dividends," but in addition to this, we will also endeavor to improve capital efficiency and further increase return levels by flexibly carrying out "acquisitions of treasury stock," while also comprehensively determining capital requirements.
Globally, treasury stock may also get created due to the 'buyback' of shares.
Treasury stock refers to issued shares that have been reacquired by the issuer.
128 retains the treasury stock and if converted methods as the main means of calculating diluted EPS (see the flowchart), the statement introduces two new computational methods, as well as retaining rules for combining or blending the old methods.
Treasury stock is in substance the same as unissued stock.
03/09/2012 Treasury Stock 31/08/2012 Total Voting Rights
For treasury stocks, stock holders would be authorized to set the number of shares, their categories as well as back-buy prices at annual general meetings.
The difference is explained by the use of the average common stock price for the period in calculating incremental shares outstanding under the treasury stock method.
The ruling coalition parties on Friday submitted a bill to amend the Commercial Code to remove the ban on companies acquiring and holding treasury stocks.
The treasury stock system should be created ''as a step toward buybacks of shares for retirement,'' Ikuo Uno, chairman of the Life Insurance Association of Japan, told a regular press conference.
The repurchased shares will be held as treasury stock and will be available for issuance upon the exercise of outstanding stock options and for other corporate purposes.
How we account for the purchase of treasury stock depends on whether the firm intends to retire the stock or to resell it.