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Treasury stock explained by small business accountants Sydney

Treasury stock is also known as treasury shares and is initially created when the shares of a company are initially issued. Our small business accountants in Sydney will explain what treasury stock is and how it works.

A treasury stock is the portion of the shares that a company keeps in their own treasury and may have come from a repurchase or buyback from shareholders.

The difference between treasury stocks and regular shares is that the shares of treasury stock will not receive dividends, will not have voting rights and cannot result in an income statement, gain or loss.

Ultimately the main benefit from treasury stock is to reduce the amount of outstanding shares and also increase the cost benefited from shares in the market. To get a proper evaluation of your treasury stock, it may be good to consult a business accountant to guide you through the process.

Our small business accountants Sydney are ready and willing to help you with all your accounting needs.

 
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