What is the definition fo a Treasury Stock?
- Posted on November 27, 2019
- Financial Terms
- By admin admin
Treasury Stock is the number of company shares that the company itself owns. This comes about as a result of a buy-back from shareholders. These shares can be sold on the market if required (for extra capital), but do not pay any dividends.
Treasury Stock repurchases may be done to increase the value of current shares on the market, or simply in an attempt to improve EPS or other metrics.
Treasury Stock is found on the Balance Sheet under Shareholders Equity, and any share buy-backs come into the Cash Flow Statement under Financing Activities.
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