Treasury Stock

Business / Taxes / Treasury Stock: Treasury stock is stock that an issuing company repurchases from its shareholders. A company may buy back its stock for a number of reasons, ranging from preventing a hostile takeover to having shares available if employees exercise their stock options. It may also choose to resell the shares or use them to meet the demand for shares from holders of convertible securities. The company may choose to repurchase if it has cash available, as an alternative to investing it in expanding the business. Or it may issue bonds to raise the money it needs to repurchase, which changes the company’s debt-to-equity ratio. In most cases, the company offers to pay a premium, or more than the market price, to build its cache of Treasury stock. Reducing the number of outstanding shares boosts the per-share value of the remaining shares and tends to increase the market price of the stock. That results, in part, because no dividends are paid on Treasury stock and it’s not included in earnings-per-share calculations, boosting that ratio.

Other Words for Stock

Stock Verb Synonyms: supply, store, inventory, stockpile, reserve, reservoir, cache, hoard, wares, merchandise, goods, selection, assortment, range, variety, array
Stock Adjective Synonyms: livestock, (domestic or farm) animals, cattle, beasts, horses, cows, oxen, sheep, goats
Stock Noun Synonyms: pedigree, bloodline, house, dynasty, (line of) descent, genealogy, extraction, roots, lineage, family, ancestry, parentage, breeding, heritage

Other Words for Treasury

Treasury Verb Synonyms: exchequer, bank, cache, resources, funds, money(s)

Repurchase Of Stock

Business / Finance / Repurchase Of Stock: Technique to pay cash to firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Treasury stock is the name given to previously issued stock that has been re MORE

Stock Cooperative

Business / Real Estate / Stock Cooperative: Ownership of real property by a corporation where each stockholder is entitled to occupancy of a unit under a lease. MORE

Stock Control Account

Business / Accounting / Stock Control Account: An account held in the nominal ledger which holds the value of all the stock held in the inventory subsidiary ledger. MORE