Treasury Stock
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| When a company buys its own stock back, that stock is recorded at cost and reported as treasury stock. Treasury stock is reported as a deduction from shareholders' equity. Any gains or losses on the sale of such shares are reported as adjustments to shareholders' equity, but are not included in income. Treasury stock is not an asset. |
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Additional Comments:
It is called treasury stock because after being reacquired by the company, it is returned to the company's treasury. The company can then resell or cancel that stock.
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Related Terms: | ||
Underlying Security The security that may be bought with a call, or sold with a put. On Series ... CBOT CBOT products are futures-based products trading on U.S. Treasury bills, 2-year U.S. Treasury notes, 5-year U.S. ... Financial Leverage Financial leverage relates a company's long-term debt and preferred stock to the company's common equity. ... | ||
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