All treasury stock is outstanding.

Question

Quizplus · Accepted Answer

The statement "All treasury stock is outstanding" is actually incorrect. Treasury stock refers to shares that were once part of the outstanding shares of a company but were later repurchased by the company. Once shares are repurchased and held as treasury stock, they are no longer considered outstanding.Outstanding shares are those that are currently held by shareholders, including public investors and company insiders. These shares have voting rights and are eligible to receive dividends. They are considered in the calculation of earnings per share (EPS) and other financial metrics that are based on the number of shares available in the market.
On the other hand, treasury stock does not have voting rights, does not receive dividends, and is not included in the calculation of EPS or market capitalization. Companies buy back shares for various reasons, such as to reduce the number of shares available in the market, which can increase the value of remaining shares, or to have a reserve of shares available for employee compensation plans.
In summary, treasury stock is not part of the outstanding shares; it represents the shares that have been repurchased by the company and are held in its treasury. These shares can be reissued at a later date, sold, or retired, but while they are held as treasury stock, they are not considered when calculating the number of shares outstanding.

All Treasury Stock Is Outstanding