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 ?
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.
Apple is responsible for nine of the 20 largest quarterly stock buybacks in S&P history.
Baker and Wurgler (2014) find that although initially resultant in a minimal stock price effect, there is a steady downhill fall in stock prices in the years following a stock buyback.
There is a need to study the impact of stock buyback on stock prices and behavior of share prices after share buybacks, so that companies may know how stock buybacks and share prices influence each other and how is it beneficial for the firm?
A stock buyback is the repurchase of outstanding stock from shareholders.
All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury.
The logic behind stock buybacks is that they signal that the company has confidence in its own ability to grow the business, but there is a concrete benefit as well.
L & L Energy Inc (NASDAQ: LLEN), a coal-mining company, is planning to start a discretionary stock buyback programme over the next 12 months.
Stock buybacks may also be made under a Rule 10b5-1 plan, the company said.
Virgin Media, which competes against British Sky Broadcasting Group PLC (BSY) and BT Group PLC (BT.A.LN), said it will return the funds through a GBP375 million stock buyback over the next 12 months and an accelerated stock buyback program of GBP125 million.
Auto Business News-27 October 2008-Daimler likely to start EUR6bn stock buyback programme(C)2008 ENPublishing -
The company also said that during the quarter it continued repurchasing outstanding shares of its common stock under a 5.0m share stock buyback programme, which was previously authorised by its board of directors.