Treasury stock is stock a company has bought back from the market and is now held by the company itself.
What is Treasury stock?
Treasury stock is formerly outstanding stock that has been repurchased by the issuing company.
Can Treasury stock be sold or retired?
Yes, Treasury stock may be retired or sold on the open market.
Key Points
Treasury Stock
Treasury stock is formerly outstanding stock that has been repurchased by the issuing company's parent company.
Cost Method
The cost method is one of two methods of recording treasury stock. It involves recording the purchase of treasury stock at its cost, which is its original purchase price.
Par Value Method
The par value method is the other method of recording treasury stock. This method records the purchase of treasury stock at its par value, or the stated value of the stock.
Get smart about your data.
Connect, sync, and query data from 37+ data sources, without code.
Get unlimited access free for 14 days.