Treasury Stock
Stock that has been repurchased by the issuing company. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations. Investopedia Says:
Treasury stock is created when a company does a share buyback and purchases its shares on the open market. This can be advantageous to shareholders because it lowers the number of shares outstanding. However, not all buybacks are a good thing. For example, if a company merely buys stock to improve financial ratios such as EPS or P/E, then the buyback is detrimental to the shareholders, and it is done without the shareholders' best interests in mind. Related Terms:
Buyback
Common Stock
Dividend
Earnings per Share - EPS
Employee Stock Option - ESO
Issuer
Outstanding Shares
Price-Earnings Ratio - P/E Ratio
Share Repurchase
Voting Right |