Treasury stock definition. Analyzing the definition of key terms often provides more insight about concepts. Treasury stock can be defined as – Corporation’s own stock that it reacquired and still holds. Treasury stock is recorded in a similar way as if a company was to purchase stock in another unrelated company, a debit to treasury stock and a credit to cash. The difference with treasury stock is that the company is purchasing its own stock back from the market and therefore treasury stock is recorded in the equity section as opposed to the assets section.
