Treasury stock - Treasurystock

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Treasury stock Treasury stock is the corporation's issued stock that has been bought back from the stockholders. As  a corporation cannot be its own shareholder, any shares purchased by the corporation are not  considered assets of the corporation. Assuming the corporation plans to re-issue the shares in the  future, the shares are held in treasury and reported as a reduction in stockholders' equity in the  balance sheet. Shares of treasury stock do not have the right to vote, receive dividends, or receive a  liquidation value. Companies purchase treasury stock if shares are needed for employee  compensation plans or to acquire another company, and to reduce the number of outstanding shares  because the stock is considered a good buy. Purchasing treasury stock may stimulate trading, and  without changing net income, will increase earnings per share. The 
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Treasury stock - Treasurystock

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