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 ?
"The company bought back 11,05,19,266 equity shares at an average price of Rs 747.38 per equity share and deployed an amount of Rs 82,59,99,99,430.03 deploying 99.999999 per cent of the maximum buyback size (excluding transaction costs) till August 26," Infosys said in a regulatory filing on Monday late night.
Buyback transactions will be triggered if the company stock is substantially undervalued, when there is high volatility in share prices or in any instance where a buyback should serve to improve shareholder value.
Shares of FPH gained by 2.5 percent to P88.15 per share following the disclosure on the additional stock buyback budget on Thursday, giving it a market capitalization of P43.8 billion.
After a series of meetings with different stakeholders, the Securities and Exchange CommiAssion of Pakistan on May 23 notified Listed Companies (Buyback of Shares) Regulations 2019'.
Earlier, the board of directors of the two companies, in their separately held meetings, approved the buyback of shares of their respective companies through a tender offer, it added.
According to DSV, the purpose of the share buyback is to adjust the capital structure and meet obligations relating to its share-based incentive programmes.
Previously, there was a set-in-stone buyback rule that allowed Berkshire's management to buy back shares when they were trading for less than 120% of book value.
The Buyback Offer will commence on April 15, 2019 at 8:00 CET and will expire on April 26, 2019 at 14:00 CET, unless extended at the sole discretion of the Company (the "Buyback Offer Period").
* OnePlus will offer 70% max buyback and 40% mini buyback on OnePlus 6T purchases starting Jan 19
The government, which holds 65.64 percent stake in the company, stands to gain about Rs 2,640 crore from tendering some of its shares in the buyback programme.
This is based upon two premises: that the earnings in the future will be at least the same as when the buyback occurred, and that the price/earnings ratio will remain the same.