Treasury stock is a type of stock that has been reacquired by the issuing corporation. While held by the issuer, the stock is considered issued but not outstanding, and is not considered in measuring the value of outstanding common shares.
In one case, it was held that treasury stock may be defined as “shares which have been issued as fully paid and have thereafter been acquired by the corporation by purchase or donation, but not retired or cancelled or restored to the status of unissued shares.”
[Last updated in March of 2022 by the Wex Definitions Team]
- Keywords