Treasury Stock
- Dennis Daggett (Deactivated)
Capital stock (usually common stock, but can also be preferred stock) of a corporation that has been issued and has subsequently been reacquired by the corporation and it has not been canceled. Such treasury stock may be held indefinitely by the corporation, may be subsequently reissued to officers or employees as part of incentive plans, may be resold, or may be canceled. The effect of treasury stock held by a corporation is to reduce the remaining number of shares outstanding, thereby resulting in a change to the percentage of ownership held by each of the remaining shareholders. Equity will be reduced either because of a reduction in assets used to pay for the treasury stock acquired or because of an increase in debt taken on to pay for the treasury stock acquired.
Authorization Path: 2.2.5.2.43.1