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How does Treasury Stock differ from Trading Stock?

     a. Treasury stock is an indication that a company is failing

 b. Treasury stock has no voting or dividend rights

 c. Treasury stock is looked negatively upon by the investment community

 d. Treasury stock can be resold to employees at a discount   

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Question ajoutée par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة
Date de publication: 2016/02/22
abdelaziz allam
par abdelaziz allam , محاسب اول , شركة كامبردج مصر للاستثمار التعليمي ش.م.م

b- treasury stock (treasury shares) is the portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders; or it may have never been issued to the public in the first place. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations.

 

Nuredin Abdelwasie
par Nuredin Abdelwasie , Senior Accountant , Ghaya Group

The answer is b - Treasury stock is held by the corporation and has no voting rights at all untill reissued

Sunil Pandey
par Sunil Pandey , Auditor , MB Group

Treasury stock results from the buyback of own shares of the company. Trading stock on the other hand is investment held for sale, mostly for the income earning motive and as a part of management of excess cash of the company. Where as treasury stock may sometime changes the shareholding structure and does not result in increase or decrease of the company's income directly.

Therefore, all statements from a to d you have given are  true.

Garry Olbrait
par Garry Olbrait , Valet De Chambre , Samba Financial Group

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