Sharechat Logo

What is treasury stock?

Friday 15th March 2002

Text too small?
Q: I notice that when a company buys back its own shares, these are held as "treasury stock". What does this mean? (especially in relation to dividends,EPS calculations, etc).

A: Treasury stock is issued shares in the company that the company has reacquired (usually by a buyback). No dividends are paid on treasury stock as these shares are being held by
the company. Unless the shares are cancelled by the directors then they can still be included when calculating earnings per share.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Can you explain the term "split factor adjustment"?
What are imputation credits?
When is a company listed as CD (cum-dividend)?
Can I buy shares in my daughters' names?
What is an IPO?
What do bid/offer and buy/sell mean?
What does 'Div cps' stand for?
When do shares go ex-dividend?
What is a 'dividend yield'?
Do I have to sell my shares through the broker I bought them from?

IRG See IRG research reports