What is treasury stock?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter20: Hybrid Financing: Preferred Stock, Warrants, And Convertibles
Section: Chapter Questions
Problem 2Q: Is preferred stock more like bonds or common stock? Explain.
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What is treasury stock?

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Ownership of an organization can be broken down into small parts or units also known as Shares. There are generally two types of shares – Equity and Preferred.

Equity shares are those which give their holders the ownership and control rights of the business. The holder of equity shares is entitled to share the earnings generated by the company.

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