Treasury Stock Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Treasury Stock, written in plain English, along with examples of how it is used.

What is Treasury Stock?

It is referred to the stock which was issuesd by the company and then re-acquired by the company itself to reduce the stock in the open maket. These shares do not pay dividends and have no voting rights.In the balance sheet these are reflected as reduced from the actual shareholders equity. In United kingdom, the treasury stock is known as debt stocks like govenment bonds and gilts.