库藏股
Treasury stock refers to the shares of stock that a company repurchases but does not cancel or destroy, instead retaining them in the company's balance sheet as capital. Treasury stock typically does not have dividend or voting rights, and therefore does not affect the shareholders' equity of the company. The existence of treasury stock helps the company manage its capital structure and stock price.
Definition: Treasury stock refers to shares that a company has repurchased but not canceled or destroyed, instead retaining them on the company's balance sheet. Treasury stock typically does not enjoy dividends or voting rights, thus having no impact on shareholders' equity. The existence of treasury stock helps the company manage its capital structure and stock price.
Origin: The concept of treasury stock originated from companies' actions to flexibly manage their capital structure and stock price through stock repurchases. The earliest stock repurchases can be traced back to the early 20th century when companies realized that repurchasing shares could effectively enhance shareholder value and control the capital structure.
Categories and Characteristics: Treasury stock can be divided into two categories: shares actively repurchased by the company and shares acquired through mergers or acquisitions. Actively repurchased treasury stock is often used for employee incentive plans or future capital operations, while treasury stock obtained through mergers or acquisitions may be used for strategic adjustments. The main characteristics of treasury stock include: 1. No entitlement to dividends or voting rights; 2. Can be reissued or canceled at any time; 3. Helps stabilize stock price and optimize capital structure.
Specific Cases: Case 1: A company repurchased some shares during a market downturn and retained them as treasury stock on the balance sheet. Years later, when the market recovered, the company reissued these treasury shares, successfully raising new funds. Case 2: Another company used treasury stock for an employee incentive plan, avoiding dilution of existing shareholders' equity while motivating employees.
Common Questions: 1. Does treasury stock affect shareholders' equity? Answer: Treasury stock does not enjoy dividends or voting rights, so it has no direct impact on shareholders' equity. 2. Why do companies repurchase shares and retain them as treasury stock? Answer: Companies repurchase shares and retain them as treasury stock to flexibly manage their capital structure, stabilize stock prices, and prepare for future capital operations or employee incentive plans.
