Investor Glossary-treasury stockInvestor Glossary-treasury stockInvestor Glossary-treasury stockInvestor Glossary-treasury stockInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Treasury Stock

The HTML to link to this page
 

A treasury stock is a stock issued by a public company at start up or as a result of a stock repurchase program. Treasury stock are included in the company's treasury which can be traded for cash if needed. Issuance of treasury stock is also a strategy used to retain control of the company in the event of a takeover. At any time, treasury stock can be retired or resold. Unlike the shareholder of a common stock or a preferred stock, the owner of a treasury stock does not have voting rights. Furthermore, a treasury stock does not pay out or accrue dividends. A treasury stock is not included as part of a company's outstanding shares so the calculation of earning per share excludes treasury stock. Accounting for treasury stock can be done two different ways. Treasury stock can be accounted for using the par value method (i.e. treasury stock is recorded at the par value of the stock reacquired) or the cost method (i.e treasury stock is recorded at the cost incurred by the company when repurchasing the shares). Treasury stock can also be referred to as treasury shares or reacquired stock.



Rate this Treasury Stock definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: deferred revenue, FTSE, labor relations, debt service coverage, EBITDA, ex-dividend date, covered put, diluted share, LIBOR, Key Rate Duration, stock split, retained earnings, implied volatility, irrevocable trust, per diem, ex-dividend, 401a, balance sheet, Zero Cost Collar, reverse mortgage, in escrow, real GDP, open position, risk management, required rate of return, class C shares, stock market close, liquidity ratio, 1035 exchange, margin rate, quality assurance, limit order, dividends payable, FICO score, average price per share, option premium, phantom income, 144a, cancelled check, 1031 exchange, deferred tax, current ratio, annual return, wholly-owned subsidiary, APR, VIX, inflation, minority interest, command economy


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use