Misconception · MIS:treasury-stock-method-eps-is-a-shortcut

Mistaken idea “The treasury-stock method uses the closing share price”

Mistaken reasoning: This mistake assumes that the treasury stock method uses the closing share price.

Updated Sep 11, 2026 Review due Dec 11, 2026

Why this is mistaken

The treasury-stock method uses the closing share price. Use the supported average market price and all required assumed proceeds for the period.

Where to watch

When this mistake may appear

  • The arithmetic produces a lower per-share amount.
Check your work

Your work may contain this mistake if:

  • Accepts the quotient without tracing the numerator, dated shares, instrument method, and antidilution control.