What Is Treasury Stock?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Treasury Stock is the amount of company shares that the company itself owns. This comes about as a result of a buy-back from shareholders. These shares can be sold on the market if required (for extra capital), but do not pay any dividends.

Treasury Stock repurchases may be done to increase the value of current shares on the market, or simply in an attempt to improve EPS or other metrics.

Treasury Stock is found on the Balance Sheet under Shareholders Equity, and any share buy-backs come into the Cash Flow Statement under Financing Activities.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.