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Simple English definitions for legal terms
treasury share
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A quick definition of treasury share:
Treasury share is a type of stock that a company has bought back from its shareholders. The company can either cancel the shares or keep them. It's like when you give someone a toy and then decide to take it back and keep it for yourself.A more thorough explanation:
A treasury share is a type of stock that a company has issued but then reacquired and either canceled or held. It is also known as treasury stock or reacquired stock. Some states treat such stock as if it is authorized but unissued.
For example, if a company issues 100 shares of stock and then buys back 20 of those shares, those 20 shares become treasury shares. The company can either cancel them or hold onto them for future use.
Treasury shares can be used for a variety of purposes, such as employee stock option plans or to boost earnings per share.