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What can treasury stock be used for in the future?

There are a number of future uses for treasury stock. The company can reissue the shares to the public to raise capital, they can issue stock dividends to investors, they can issue the shares to employees as stock options, or they could use the stock for an investment or acquisition of another company.

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  • What are the two ways to classify treasury stock?

    After a company buys back common stock that was previously issued and outstanding, it is classified as treasury stock. Treasury stock can either be permanently retired or can be held-for-sale. Once the shares are retired, they cannot be subsequent reissued, and they are removed from the company’s balance sheet. Most companies choose to classify treasury...

  • What is treasury stock?

    Treasury stock represents stock that was outstanding stock and was reacquired by the company. Treasury stock reduces the number of shares outstanding.