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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use