What are treasury stocks and why do companies engage in their purchase?
Treasury stock is the outstanding stock that is bought back or repurchased from stockholders by the company which has issued these shares in the first place. These shares are issued but not outstanding and are excluded in the calculation of dividends or earnings per share. A treasury stock or reacquired stock is the stock which is also bought back by the issuing company thereby decreasing the amount of outstanding stock in the open market. In other words the Treasury stock is that part or portion of shares that a company keeps in its own treasury. They share have come either from a part of the float and stock outstanding before being reacquired by the company or may have emanated from the shares that have never been issued to the public.
The various why companies engage in purchase of its shares is as follows:
What are treasury stocks and why do companies engage in their purchase?
What is social accounting and why do companies engage in it?
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Why do investors invest in stocks of different companies? Investors invest in stocks of different companies to earn ____ and to make a profit when they sell the stocks at a higher price.
Why do investors invest in stocks of different companies? Investors invest in stocks of different companies to earn___ and to make a profit when they sell the stocks at a higher price.
1). Discuss the difference between authorized shares and outstanding shares. 2). Are there other classifications of shares that are important to consider? 3). What are treasury stocks and why do companies engage in their purchase?
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Q: Give four reasons why a company might purchase treasury stock.