Treasury Stock

Treasury stock- It is a type of stock that is reacquired by a corporation or company to be retired or resold to the public and to potential investors. Treasury stock is only issued when the stock or securities are not outstanding and is not taken in to account for the consideration when they are calculating a potential earning per shear or the dividend the sole purpose of voting. A company may hold all of its treasury stock to control or to frustrate a takeover attempt. In addition, the company can recollected the outstanding stock and the insider holdings on the open market to reducing the amount available.