treasury stock method


Accounting method that factors in the potential value of new shares that will be acquired when remaining options and warrants are exercised. This figure is computed by taking the number of in the money shares and subtracting them from the number of shares that can be repurchased. The resulting figure is then included in the company's diluted earnings per share.

Use this term in a sentence

You may want to try and use the treasury stock method if you think that may make things easier for you.

​ Was this Helpful? YES  NO 3 people found this helpful.

When the SEC accountants audited ABC Corp's books, they discovered the company devised a new method for using the treasury stock method to mislead and defraud investors.

​ Was this Helpful? YES  NO 7 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Treasury Stock treasury yield