Menu Links  Why Companies Keep Treasury Stock  Treasury stock
refers to the amount of shares in a company that a publicly
traded business chooses to keep out of the public stock pool for
one reason or another. Perhaps they may have never issued this
stock to be purchased in the first place or they may have bought
it back off the public market for a specific purpose.
Understanding Treasury Stock  A company may choose to keep its
own stock for a number of reasons. They could give it as a bonus
for employees, keep it off the market in order to prevent
devaluation, or hold it so that the company is the majority
stake holder and not another corporation or person. In fact,
there are a number of reasons, some of which are discussed here.
Offering Stock to Employees  Keeping treasury stock can be an
effective way to provide a bonus or incentive for employees, as
opposed to offering them a monetary compensation. This stock has
a potential pay-out that is greater than the monetary value of
the stock and therefore is