Treasury Stock
Content
Definition
Treasury Stock consists of shares that were once part of the float and outstanding shares but were subsequently repurchased by the company.
Usage and Context
Treasury stock means shares bought back by the company, lowering the number of shares available.
Frequently asked questions
- What are shares of stock that have been repurchased by the corporation called? Shares bought back by the corporation are called treasury stock.
- When a corporation repurchases its stock as treasury stock, what happens to the number of shares outstanding? When a corporation repurchases its stock as treasury stock, the number of shares outstanding decreases.
- Is treasury stock the same as buyback? Yes, treasury stock means shares bought back by the company and held in its treasury, lowering the number of outstanding shares.
Benefits
Treasury stock can boost earnings per share by reducing the number of outstanding shares.
Conclusion
Treasury stock can improve earnings per share by reducing the number of outstanding shares.
