Treasury Stock
Treasury Stock consists of shares that were once part of the float and outstanding shares but were subsequently repurchased by the company.
Benefits
Treasury stock can boost earnings per share by reducing the number of outstanding shares.
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.
Key Takeaway
Treasury stock can improve earnings per share by reducing the number of outstanding shares.