Treasury Stock (T/S) and Retired Shares
- Please review reasons why a corporation would reacquire its own shares. Leveraged buyouts may be used.
- Carries a debit balance.
- Contra owner equity.
- NOT an asset!
- Repurchased with an intent to resell--
create treasury stock.
- Repurchased with an intent to deface and retire (never to reissue)--create retired shares.