treasury stock

Definition

Shares that a company has issued and later repurchased, sitting in corporate limbo—not quite cancelled but no longer outstanding. The equity equivalent of taking back your gift because the recipient didn't appreciate it enough.

Example Usage

The board authorized $1 billion for share buybacks, which will be held as treasury stock and reduce our outstanding share count.

Origin

Corporate finance terminology distinguishing repurchased shares from issued or authorized shares.

Fun Fact

Treasury stock has no voting rights and receives no dividends, yet companies hold it rather than retiring it to maintain flexibility for future stock-based compensation.

Source: Corporate finance and accounting

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