{"id":3508,"date":"2021-04-15T09:37:03","date_gmt":"2021-04-15T04:07:03","guid":{"rendered":"https:\/\/staging.trica.co\/equity\/blog\/?p=3508"},"modified":"2022-07-01T04:29:29","modified_gmt":"2022-07-01T04:29:29","slug":"treasury-shares-in-singapore","status":"publish","type":"post","link":"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/","title":{"rendered":"Treasury Shares in Singapore &#8211; The Secret to Keeping Founders in Charge"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The issuing company repurchases treasury shares to reduce the number of shares outstanding on the market.<\/span><\/p>\n<h2><b>Understanding Treasury Shares for Singapore Startups<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">All startups have an authorized amount of equity capital that can be issued as shares. These shares can be classified as:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Outstanding shares:<\/b><span style=\"font-weight: 400;\"> The total number of shares owned by investors, including management and employees\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Float: <\/b><span style=\"font-weight: 400;\">The amount of equity available to the public for sale and purchase of the company\u2019s stock from share markets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Treasury shares:<\/b><span style=\"font-weight: 400;\"> The shares that were once outstanding shares or a part of the float but were subsequently repurchased by the company.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Treasury shares are the same as unissued equity capital. They are not classified as an asset on the balance sheet as they don\u2019t have any probable future economic benefit. These shares reduce ordinary share capital. They are usually presented under the equity capital in the balance sheet as a negative number.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When repurchased, these shares can either be canceled or held for reissue\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They neither pay dividends nor have voting rights\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The possession of these shares does not sanction the right to receive any assets on liquidation or any other pre-emptive shareholder rights<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The number of shares cannot exceed the maximum proportion of total capitalization specified by the laws and regulations of Singapore\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>Why are these shares issued?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Treasury shares, being bought-back shares, reduce the number of outstanding shares and thus positively affect the earning per share and price to earnings ratio (PE ratio). However, the value of shares remains the same as market risk increases with the inclusion of the treasury shares.\u00a0<\/span><br \/>\n<span style=\"font-weight: 400;\">Despite this, these shares are useful as they can be distributed to shareholders. By distributing these shares, founders can avoid paying dividends to investors and save tax at the same time. They are also leveraged to protect the company from hostile takeovers.\u00a0<\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/www.trica.co\/equity\/blog\/stock-options\/esop-tax-implications-singapore\/\">Click here<\/a> for a blog on the ESOP Tax implications in Singapore!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The issuing company repurchases treasury shares to reduce the number of shares outstanding on the market. Understanding Treasury Shares for Singapore Startups All startups have an authorized amount of equity capital that can be issued as shares. These shares can be classified as:\u00a0 Outstanding shares: The total number of shares owned by investors, including management and employees\u00a0 Float: The amount of equity available to the public for sale and purchase of the company\u2019s stock from share markets Treasury shares: The shares that were once outstanding shares or a part of the float but were subsequently repurchased by the company. Treasury [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":5421,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[47],"tags":[75,76,375,376,377,393,430,431,432],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Treasury Shares in Singapore - The Secret to Keeping Founders in Charge<\/title>\n<meta name=\"description\" content=\"Treasury shares are shares that are bought back by the issuing company to reduce the number of shares outstanding on the market\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Treasury Shares in Singapore - The Secret to Keeping Founders in Charge\" \/>\n<meta property=\"og:description\" content=\"Treasury shares are shares that are bought back by the issuing company to reduce the number of shares outstanding on the market\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/\" \/>\n<meta property=\"og:site_name\" content=\"trica equity blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-15T04:07:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-01T04:29:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/equity-blog-us.trica.co\/wp-content\/uploads\/2022\/06\/treasury-shares.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Roshan Raj\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Roshan Raj\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/#website\",\"url\":\"https:\/\/trica.co\/equity\/blog\/us\/\",\"name\":\"trica equity blog\",\"description\":\"digitize your equity stack\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/trica.co\/equity\/blog\/us\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/#primaryimage\",\"url\":\"https:\/\/equity-blog-us.trica.co\/wp-content\/uploads\/2022\/06\/treasury-shares.jpeg\",\"contentUrl\":\"https:\/\/equity-blog-us.trica.co\/wp-content\/uploads\/2022\/06\/treasury-shares.jpeg\",\"width\":800,\"height\":400},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/#webpage\",\"url\":\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/\",\"name\":\"Treasury Shares in Singapore - The Secret to Keeping Founders in Charge\",\"isPartOf\":{\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/#primaryimage\"},\"datePublished\":\"2021-04-15T04:07:03+00:00\",\"dateModified\":\"2022-07-01T04:29:29+00:00\",\"author\":{\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/#\/schema\/person\/2cdd643bfe94116f3b17a8d00deaf65f\"},\"description\":\"Treasury shares are shares that are bought back by the issuing company to reduce the number of shares outstanding on the market\",\"breadcrumb\":{\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/trica.co\/equity\/blog\/us\/treasury-shares-in-singapore\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/trica.co\/equity\/blog\/us\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Treasury Shares in Singapore &#8211; 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