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Accounting
Treasury Stock
Shares of the company's own stock that it has bought back from investors and is holding in its own treasury.
Treasury stock is recorded as a contra-equity account, which reduces total stockholders' equity. It can be re-issued later or retired. Companies buy it to boost earnings per share or return cash to shareholders.It's like a kid buying back his own trading cards from friends so he can control how many are in circulation.
Real world: Apple buys back billions of its own shares and holds them as treasury stock instead of re-issuing them.
💡 Treasury stock is a signal that management thinks their own shares are a good investment — it reduces the number of shares outstanding.