Treasury Stock (Noun)
Meaning
Stock that has been bought back by the issuing corporation and is available for retirement or resale; it is issued but not outstanding; it cannot vote and pays no dividends.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's treasury stock grew significantly after the massive share buyback program was implemented.
- The board of directors decided to issue shares from the treasury stock to new employees as part of their stock option plan.
- The corporation's total number of shares outstanding decreased due to the purchase of treasury stock.
- Treasury stock can be used by companies to raise money or to reward employee performance without increasing the total number of outstanding shares.
- After the treasury stock was reissued to the public, the company's market capitalization increased substantially.