What Are the Benefits of Holding Treasury Stock?
Treasury stock is stock that is sold by its issuing company and then repurchased by that company. Such stocks do not have voting rights, and sometimes companies exercise stock purchase privileges and implement other plans while holding treasury stock. The shares of other companies held by the enterprise, the unissued shares of the company and the shares that have been issued and returned to the company, but the shares that have been cancelled can not be regarded as treasury shares. It is issued stock that is not circulated outside the company, has no voting rights, and does not require the company to pay dividends. The formation of treasury stocks can be donated by the company's shareholders or the outside world, or paid by debtors to settle the outstanding debts, and can also be obtained or repurchased for other reasons, such as to shrink the total capital or to divide the company's stocks as dividends For employees and so on. [1]