Treasury shares will increase as company buys back their own shares. I understand that this will be positive to the company as this will improve earnings. How about when the company cancels the treasury shares? What will be the impact to the financials? Is it a positive sign?
Hi Teik Siang,
When the company buy back the shares they can choose to cancel it or keep it. Cancellation means that the shares are no longer in circulation unlike treasury shares where you can still have the option to use it to issue shares. As long as the company buy back share at the right price, it is generally a good sign.
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