What Is Treasury Shares?
Treasury shares are previously issued shares that a company has repurchased and holds itself, without voting rights or dividend entitlement.
Treasury Shares Meaning
The treasury shares meaning centres on flexibility in managing a company’s capital structure. To define treasury shares in practice, once a company buys back its own shares, they are held in treasury rather than being cancelled. These shares cannot vote, receive dividends or count toward ownership percentages, but they can later be reissued to investors, used for employee option schemes or sold to raise capital. A clear treasury shares definition is important because holding shares in treasury allows companies to adjust dilution, support strategic transactions and manage equity incentives without issuing new shares. Treasury shares stand for efficient capital management and structural optionality.
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