Friday, February 20, 2009

Definition of Treasury Stock

Treasury Stock is shares of a corporation's capital stock that have already been issued and are now being re-purchased by the same issuing corporation.

These treasury shares may be held onto by the company permanently or may be re-issued at a later time to the public. Shares of capital stock will not receive dividends, will not have the power to vote, and cannot share in the distribution of assets upon dissolution of the company.

It is also important to note that shares of a company's stock that are held in treasury are not regarded as shares outstanding and therefore will not be used in the calculation of earnings per share (EPS)

Additional Accounting Examples and Accounting Definitions:

Cost of Preferred Stock
Calculate Preferred Stock Value

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.