reacquired stock
Học thuậtThân thiện
Definition
Noun: * Reacquired stock: Shares of a company's own stock that the company has repurchased from the open market or from shareholders. These shares are no longer considered outstanding, meaning they are not held by external investors. They do not confer voting rights or pay dividends while held by the company. The company may hold these shares for resale, use them for employee compensation, or retire them permanently.
Usage
- Reacquired stock is also commonly known as treasury stock or treasury shares.
- It is listed as a contra equity account on the company's balance sheet, reducing total shareholders' equity.
- The acquisition of reacquired stock is a method for a company to return capital to shareholders or to signal management's belief that the stock is undervalued.
Examples
- "The board authorized the buyback program to increase the amount of reacquired stock on the balance sheet."
- "Holding reacquired stock gives the company flexibility for future acquisitions or employee stock option plans."
- "Unlike outstanding shares, reacquired stock does not receive a dividend payment."
Advanced Usage
- Accounting Treatment: Reacquired stock is not an asset; it is a reduction of equity. When retired, the stock is canceled and the company's issued share capital is permanently reduced.
- Earnings Per Share (EPS) Impact: Because reacquired stock reduces the number of shares outstanding, it can increase a company's earnings per share (EPS), all else being equal.
Variants and Related Words
- Treasury Stock (n): The most common synonym for reacquired stock.
- Treasury Share (n): A single unit of treasury stock.
- Share Buyback (n): The action or program of a company repurchasing its own shares, which results in reacquired stock.
- Stock Repurchase (n): Synonym for share buyback.
Synonyms
- Treasury stock
- Treasury shares
- Repurchased shares
Related Phrases
- To hold as treasury stock: The state of keeping reacquired shares without canceling them.
- Example: "The company decided to hold the repurchased shares as treasury stock."
- To retire treasury stock: The action of permanently canceling reacquired shares.
- Example: "After the buyback, the board voted to retire the treasury stock."
Noun
- stock that has been bought back by the issuing corporation and is available for retirement or resale; it is issued but not outstanding; it cannot vote and pays no dividends