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21-Apr-2020 10:44

If a company has, say, 0,000 in stockholders' equity and spends ,000 to buy back shares, its balance sheet will show 0,000 in equity, less ,000 in treasury stock, for a total of 5,000.

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The amount the company paid for the bought-back shares goes into an account called "treasury stock." This is a negative-equity or contra-equity account, meaning the balance reduces the total amount of stockholders' equity.

After all, when you send a text, you don’t really have the luxury of fully expressing yourself through voice tone and changes of body language the way you would in person.



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