2024
Treasury Stock: A Strategic Tool for Corporate Flexibility and Value Management
Treasury stock refers to shares that a company repurchases using its own cash. These shares can either be held for future issuance or retired permanently, removing them from market circulation. Typically, companies set an upper limit on the number of shares they plan to buy back. However, the actual number of shares repurchased determines the execution rate—the ratio of shares actually repurchased to the total planned buyback volume. A high execution rate indicates aggressive buybacks, whereas a low execution rate suggests the company may be exercising caution based on market conditions.
