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Treasury Shares for Dummies

noun

What does Treasury Shares really mean?

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Treasury Shares:

Hey there! So, you're eager to know about treasury shares, right? No worries, I'll explain it to you in a super simple way! So, imagine you have a piggy bank where you save your pocket money, and you put your spare coins in there. Treasury shares are quite similar, but instead of coins, it's all about company shares!

Alright, so when a company decides to sell its shares to the public, it means that people like you and me can buy a part of that company. These shares represent ownership in the company, kind of like owning a small piece of it. Now, let's imagine that some people already bought those shares, but then they decided to sell them back to the company itself. These shares that the company buys back are called treasury shares.

Think of it like the company putting some money aside for a rainy day in their piggy bank, just like you do with your spare change. These treasury shares are not available for the public to buy anymore since they are "saved" by the company. The company can hold onto these shares and use them at a later time, like if they want to reward their employees or if they need some extra money in the future.

So, to sum it up, treasury shares are company shares that have been sold to the public, but then bought back by the company itself. It's like the company's personal stash of shares, kept aside for future purposes. They can be used for different reasons, like rewarding employees or raising money if needed.

I hope that makes sense! If you have any more questions, feel free to ask!


Revised and Fact checked by Olivia Brown on 2023-10-30 07:15:03

Treasury Shares In a sentece

Learn how to use Treasury Shares inside a sentece

  • When a company buys back some of its own stock from the shareholders, these shares are called treasury shares.
  • If a company wants to reduce the number of shares available to the public, it can put some of its shares into treasury.
  • When a company issues stock but doesn't sell them to anyone, those shares become treasury shares.
  • If a company wants to use its own shares for acquisitions or employee stock option plans, it can take shares from treasury.
  • When a company holds treasury shares, it means they still have some of their own stock that is not owned by the public.

Treasury Shares Synonyms

Words that can be interchanged for the original word in the same context.

reacquired stock treasury stock

Treasury Shares Hypernyms

Words that are more generic than the original word.

stock