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 ?
EFG Executive Chairman Karim Awad said: "The objective of acquiring the treasury shares is to maximise the capital returns as well as shareholder profits.
Reportedly, this decrease in number of treasury shares is a consequence of the share capital reduction resolved by the company's Annual General Meeting on 13 March 2019, which was effected on 12 April 2019.
After the transfer, the number of shares held as treasury shares is 3,506,620.
As previously announced, EFG International has agreed to sell 10.2 million treasury shares to EFG Bank European Financial Group, subject to a pro-rata claw-back right for other shareholders.
12,691,247 treasury shares (equal to 0.35% of the share capital) for an aggregate amount of 179,459,400.69 euro.
Following this transfer, Afarak Group holds a total of 2,494 treasury shares.
For disposal of treasury shares, volume and price restrictions were removed and now companies do not require special resolution from its members for disposal of treasury shares.
The concept of treasury shares is an accounting concept and the debate over how to treat them goes back for decades.
The earlier framework for buy-back did not provide for retaining the purchased shares as treasury shares, rather the purchased shares had to be cancelled.
(Within that, the number of treasury shares at OTP Group members outside the mother
AEV has about 50 million in treasury shares that its board had authorized to sell.