Hello Classmates,Treasury stocks are the shares of a business held by the business's treasury and are not accessibleto the general public. Stockholders equity is a balance sheet asset that comprises shares of capitalplus retained profits. It also reflects the difference between the worth of assets and obligations. Abalance sheet is an accountant's view of the book worth of a company's assets and obligations ona particular date and only on that date. A balance sheet will also inform us about a company'sfinancial health on the day the balance sheet is created. That scenario continuously changes, so itis more like a snapshot than a video. Although the process of creating a balance statement isregulated, there can be some subjectivity in reading it. Distinct balance sheet elements caninform you how the company is doing (Reading a balance sheet, 2011).Treasury stocks affect the stockholder's equity in many ways. Treasury stock lowers owners'equity by the amount spent for the stock because it reflects the number of shares repurchased onthe open market. Treasury shares can be sold or kept for open market selling. Shares that havebeen retired are forever terminated and cannot be reissued. Companies buy back treasury stocksfor a couple of reasons. A business may repurchase shares to decrease the number of shares onthe market and raise the worth of remaining shares. A leveraged buyout is a corporate financedeal in which a business uses loans to repurchase some of its shares. Another way treasury stockbuybacks affect the stockholders' equity section of the balance sheet and the impact on thecalculation of earnings per share have several benefits over dividends, mainly if the stock isselling for less than its actual worth. In some cases, if a business buyback too many treasurystocks, it can lead to concerns about share price being manipulated.