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1. Treasury stock is a corporation's own stock that has been issued, fully paid for, and reacquired by the corporation and is being held in it's treasury for future use.

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17y ago

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Does the acquisition of treasury stock increase cash?

Treasury stock is stock that the issuing company buys back from the shareholders. Since the company is buying back its own shares, it decreases cash and stockholder equity, but increases a new balance called "Treasury Stock".


What is it called when a company buys back its own stock?

It is called a stock repurchase and is posted to an account called Treasury Stock, a contra-account in the Equity section.


What is Share issue?

Shares initially sold to an investor and then subsequently repurchased by the issuing corporation. These share are no longer outstanding but remain issued until the corporation cancels them, if it ever does cancel them. Shares issued are not included in the market capitalization calculation.


Why are treasury tags called treasury tags?

Because they treasure tags


What is the practice of issuing legal order called?

A court Injunction is the practice of issuing a legal order.


What The practice of issuing legal order is called a?

A court Injunction is the practice of issuing a legal order.


How does a company increase its number of outstanding shares through the process of issuing more shares?

A company can increase its number of outstanding shares by issuing more shares through a process called a stock offering. This involves selling new shares to investors, which can help raise capital for the company. By increasing the number of outstanding shares, the company dilutes the ownership of existing shareholders, but it can also potentially increase the company's market value and liquidity.


The practice of issuing a legal order is called a court what?

A court Injunction is the practice of issuing a legal order.


What The practice of issuing a legal order is called a court?

A court Injunction is the practice of issuing a legal order.


What is the Differentiate between deemed prospectus and abridged prospectus?

According to sec 56(3), no one can issue any form of application for shares or debentures of a company unless it is accompanied by a memorandum containing such salient features of a prospectus as may be prescribed. Such memorandum is called an abridged prospectus. As per SEC 56(3)2a such salient features are 1.name,address of the company, opening and closing of the issue, name and address of the book running lead manager (BRLM) 2.terms of the present issue 3.particulars of the issue 4.company management and projects 5.financial position of the company Deemed Prospectus Sometimes the company may instead of offering its shares and debentures to the public allot them to any intermediary called issuing house. These issuing house, in turn, allot them for sale to the public by advertisement or circular of its own. Such a prospectus is called deemed prospectus. the main purpose for issuing an offer for sale through an issuing house is that that the company saves underwriting expenses and in turn obtains the expertise of an issuing house.


What is the accounting department of the Treasury called?

exchequer


What is the cost related to issuing new stock called?

The cost of issuing new stock is called "Share Issue Cost" or SIC. These costs are treated as an expense on the balance sheet.