Purchase and Sale of Treasury Stock

Описание: Hey there everyone!

Today, we're diving into the fascinating world of treasury stock—what it is, how it's recorded, and what happens when a company decides to buy back or reissue its shares.

Treasury stock represents shares that a company buys back from its shareholders. Companies might do this to boost their stock price or improve financial ratios. It's important to note that treasury stock does not have voting rights and does not receive dividends.

The way treasury stock transactions impact financial statements hinges crucially on the reissuance price relative to the repurchase cost. These transactions adjust equity differently and are pivotal in understanding corporate financial health and strategy.

That wraps up our examination of treasury stock! If this video helped clarify how treasury stock works or if you have any more questions, drop a comment below. Don’t forget to like, share, and subscribe for more insightful content. See you in the next video!

Jonathan M. Wild
www.wildaccounting.com

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