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How does Treasury Stock differ from Trading Stock?

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/05/03
Zahid Farooq
by Zahid Farooq , Taxation and Accounting Director , BMS Auditing

The shares which company keep in their own treasury are called treasury stocks. Treasury stock may have come from a repurchase or buyback from shareholders; or it may have never been issued to the public in the first place. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations.

On the others hands the trading stocks ate the shares of the company which are outstanding and are being traded openly in the stock exchanges. 

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