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 ?
BANKING AND CREDIT NEWS-December 16, 2015-Bank of England reveals index-linked treasury stocks payments
Another reason for purchasing treasury stock involves a firm's desire to maintain a target capital structure.
In case of RIL, treasury stock got created at the time of its merger with Reliance Petroleum Ltd ( erstwhile RPL) in 2002 and for JP Associates, when group companies Jaypee Hotels, Jaypee Cement, Jaiprakash Enterprises and Gujarat Anjan Cement were merged with it in 2009.
A ruling Liberal Democratic Party panel tasked to map out measures to prevent a further fall in share prices agreed earlier in the day to contemplate treasury stock.
For example, when a cash payment is required or permitted at the conversion of a convertible security, the cash proceeds assumed to be received also are assumed--using the treasury stock method--to be applied to repurchase common stock.
The cost method is based on the assumption that purchase and subsequent resale of treasury stock are two parts of one transaction.
This is only a part of the Rs 4,244- crore funds, the company is planning to raise by selling treasury stocks lying in its Petroleum Trust.
Telefonica has been engaged in a EUR4bn share buyback programme which has included building up its treasury stock, reports Dow Jones.
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.
Answers to May Accounting Scene Quiz 1/1/93 Cash $150,000 Common Stock $100,000 APIC-Common 50,000 to record original issue of $10 par common stock 8/12/93 Treasury Stock 76,000 Cash 76,000 to record the repurchase of 4,000 shares 9/3/93 Treasury Stock 16,800 Cash 16,800 to record the repurchase of 800 shares 9/15/93 Cash 48,400 Treasury Stock 41,800 APIC-Treasury Stock 6,600 to record sale purchased 8/12 9/22/93 Cash 30,600 APIC-Treasury Stock 3,600 Treasury Stock 34,200 to record sale purchased 8/12 10/1/93 Cash 2,400 APIC-Treasury Stock 3,000 Retained Earnings 900 Treasury Stock 6,300 to record sale 9/3 11/1 APIC-Common Stock 2,500 Common Stock 5,000 Retained Earnings 3,000 Treasury Stock 10,500 to retire remaining 500 shares of treasury stock
The Bank of England on Tuesday reported the rate of interest payable on Index-linked Treasury Stock 2016, 2024, and 2030.