treasury stock

G

gameday0

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Can someone give me a link or explain how Treasury stock effects a companies financial statements. In particular there was a couple q’s in the mock 2 that I had to compute P/BV and I had to find book value with the Treasury stock. A simple example will probably be the best.
 
treasury stock is stock the company repurchases. it is subtracted from equity in the amount that is repurchased.
 
treasury stock is stock that was purchased back by company. often an offset to equity since its not really stock outstanding anymore. in fact. they are doing away with the concept of treasury stock since it doesnt really make any sense (if they bought back their common stock, it should not be treasuty stock, but just redeemed right?)
if you have bv with treas stock. my guess is to subtract it
 
skip, i dont think ‘theyre’ thinking about doing away with treasury stock. if you saw this somewhere in eitf discussions would you mind posting a link.
 
so you would subtract from bv the amount you spent to purchase the stock, however, there is less common stock out there so the bv per share would offset.
 
actually.. its not in the works but might as well be. i heard this from mp3 audio file issed from Allen Resources…in the 20-40 minute range of FSA lecture 3…they make a point of saying what i mentioned to illustrate how it is almost usless in todays world..sorry for not having more specific references!
check out this link at the bottom page under SOME HISTORY
http://www.webcpa.com/article.cfm?articleid=27432
 
can u give us example..that would be gr8 and helpful.
that 2-3 qs
cheers
abhi
 
t stock shrinks the capital base, ie. shareholders equity
back out it out, get to “true” SE then find book val per share.
stock price to book val per share = PRICE TO BOOK
dont forget THEY MAY ALSO ASK YOU TO BACK OUT GOODWILL IN SAME QUESTION. i saw one that wanted you to get stock price via DDM and then get adjusted book and then do a price/book.
 
You must log in or register to reply here.
Back
Top