The difference between treasury stock and outstanding stock lies in their ownership status. Outstanding stock refers to all the shares of a company's stock that have been issued and are currently owned by investors. These shares are actively traded in the market, and their ownership represents a claim on the company's assets and earnings.

On the other hand, treasury stock refers to the company's own shares that have been bought back from the market and are held in the company's treasury. Treasury stock is not considered outstanding, as it does not represent ownership in the company. Instead, it is treated as a form of capital that the company can use for various purposes, such as employee stock options, acquisitions, or reducing the number of outstanding shares.

In summary, outstanding stock represents ownership in the company by investors, while treasury stock represents the company's own shares that have been repurchased and held in reserve.

Treasury stock and outstanding stock are terms commonly used in the context of a company's shares, but they refer to distinct concepts. Outstanding stock encompasses all shares issued by a company and held by shareholders, including institutional investors and the public. It represents the total ownership in the company and influences factors like market capitalization and earnings per share.

On the other hand, treasury stock refers to shares that a company previously issued and subsequently repurchased. These repurchased shares are not considered outstanding and, therefore, do not confer ownership rights or receive dividends. Companies often buy back their own shares to reduce the number of outstanding shares, potentially boosting earnings per share and signaling confidence in the company's financial health. Understanding the difference between treasury stock and outstanding stock is crucial for investors analyzing a company's financial structure and performance.