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 ?
This was a huge relief to us as these provisions are something positive because they favour good corporate governance and so are aligned with the general trend globally, which is either to eliminate treasury stocks altogether or not allow shareholders using treasury stocks to vote in support of management at annual general meetings.
A company should include unvested RSUs (due to a future service, performance, or market condition requirement) as contingently issuable shares (pursuant to ASC 260-10-45-17 and 18) in the calculation of treasury stock for diluted EPS.
Of the firms that had treasury stock transactions from 2005 through 2007, only 22% of the S&P 500 firms and 24% of the small-cap companies we examined used the par value method.
However, the treasury stock method incorporates no dilution when earnings are negative, and this substantial difference between economic dilution and reported dilution provides a potential explanation for some of the decreased magnitude of ERCs on loss observations.
Treasury stock refers to issued shares that have been reacquired by the issuer.
These computations will continue to rely upon the currently used "Treasury Stock" and "If-Converted" methods.
In accordance with the terms of the prospectus dated 14 January 1983, the Bank of England said that the rate of interest payable on the 2 1/2% Index-Linked Treasury Stock 2016 for the interest payment due on 26 July 2016 will be GBP3.9786 per GBP100 nominal of stock.
10 December 2013 - Russian state-controlled telecoms major Rostelecom OAO (MCX:RTKM) could sell a 15% interest in the company worth up to RUB46bn (USD1.4bn/EUR1bn) next year via a secondary public offering (SPO) of treasury stock, Kommersant reported today, quoting a source.
In May 2012 Summa acquired 10% out of 13% of FESCO treasury stock owned by company subsidiaries, Far Eastern Shipping Company PLC and Neteller Holdings Limited (according to FESCO 2011 IFRS).
22 September 2011 - Italian pharmaceutical company Recordati SpA (BIT:REC) said today it had started a share repurchase programme in order to serve current and future employees stock option plans and to constitute a treasury stock of own shares.
The buyback is for the purpose of either being cancelled, held as treasury stock or disposed of, under the terms of CVM Instruction no.
10) to spend up to NT$9 billion to buy back 200,000,000 shares of treasury stock at the price range of NT$33-45, in order to protect the interests of shareholders and pave the way for the introduction of strategic investors.