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Treasury
masud
Posted: 31 January 2017 22:00:18(UTC)
#1

Joined: 25/04/2016(UTC)
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Some companies keep shares in Treasury, Please let me know, what it mean and how does it
help shareholders, Thanks.
Redundant (Old Timer?)
Posted: 01 February 2017 10:28:09(UTC)
#2

Joined: 07/01/2010(UTC)
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Companies hold shares in Treasury for a number of reasons:

1. Share Options of Directors and Staff where the shares have not been issued to the recipients as the conditions of the grant have not yet been fulfilled.

2. As above, but whilst the conditions of the grant have been fulfilled, the option has not yet been exercised by the recipient.

3. Shares brought back on the open market awaiting cancellation.

I am sure there are other reasons, but those are the ones that immediately come to mind.

These are company commitments, so shareholders need to be aware of these and the (minimal) dilution effect on existing shareholders they will have, but otherwise they are of no benefit to shareholders.

1 user thanked Redundant (Old Timer?) for this post.
masud on 01/02/2017(UTC)
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