PDA

View Full Version : Treasury Stock


vmb0905
Apr 28, 2007, 12:28 PM
Are dividends paid on treasury stock?

seachelsgo
May 1, 2007, 10:26 PM
No. Dividends would not be paid on treasury stock because that stock is the company's own stock, therefore it would be paying dividends to itself which would just be folded back into retained earnings. In a problem, separate treasury stock from the rest of the common stock (held by the shareholders and not the company itself) and calculate dividend payments from there.