How Do You Spell TREASURY SHARES?
Pronunciation: [tɹˈɛʒəɹi ʃˈe͡əz] (IPA) 
Pronunciation: [tɹˈɛʒəɹi ʃˈe͡əz] (IPA)
Treasury shares refer to the shares of a company's stock that have been repurchased by the company and are held in its own treasury. These shares were once issued and outstanding, but have been bought back by the company, either through open market purchases or buybacks from shareholders. As a result, treasury shares no longer have voting rights and do not pay dividends.
The main purpose of treasury shares is to be used for various corporate purposes. Companies may repurchase their own shares to support stock prices, increase earnings per share, or provide stock options to employees. Treasury shares can also be utilized in mergers and acquisitions, as they can be reissued to facilitate the acquisition of other companies.
Additionally, treasury shares offer some advantages to the company. By reducing the number of outstanding shares, treasury shares can increase earnings per share and enhance shareholder value. These shares can also be quickly reissued into the market if the company needs to raise capital or meet other financial obligations.
However, it is important to note that treasury shares are not considered as outstanding shares and do not represent ownership in the company. They are instead held by the company itself as an investment in its own stock.
The word "treasury shares" is derived from the combination of the words "treasury" and "shares".
The term "treasury" refers to the department or office responsible for managing a country's or organization's finances. It originates from the Middle English word "tresorie", which is derived from the Old French word "tresorie", meaning "treasury" or "storehouse".
The word "shares" refers to the units into which the capital of a company is divided. It comes from the Middle English word "scheren", which evolved from the Old English word "scearu", meaning "lot" or "division".
Therefore, "treasury shares" refers to the shares that a company holds in its own treasury or storehouse, meaning the shares that have been repurchased or bought back by the company and are no longer held by external shareholders.
