Treasury bills

This topic has 5 replies, 2 voices, and was last updated 4 months ago by John Moffat.

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February 5, 2022 at 5:13 am #648129
johnbriane
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Dear sir

Could you please tell what’s the difference between

Treasury bills and treasury shares

I get confused

Thank you
February 5, 2022 at 9:33 am #648140
John Moffat
Keymaster
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Treasury bills are debt borrowing by the government (like loan stock issued by companies except that they are short term borrowing).

Treasury stock are shares in a company that have been bought back by the company but have not been cancelled – they are not relevant for Paper FM.
February 7, 2022 at 4:06 pm #648244
johnbriane
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sir with regards to treasury bills … why would the government burrow money from companies sir
February 8, 2022 at 7:59 am #648271
John Moffat
Keymaster
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The government doesn’t borrow money only from companies. All governments borrow money so as to help finance government spending. They issue debt just like companies issue debt and anyone can invest in the debt (and receive interest) – not only companies.
February 8, 2022 at 3:29 pm #648313
johnbriane
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oh thank you sir

plus im also confused with the terms

issueing debt
and investing in debt

issuing debt is the party who burrows the money or funds and investing in debt is the party lending or giving funds or money .

am i correct sir ? ( if im not mistaken )
February 9, 2022 at 8:23 am #648343
John Moffat
Keymaster
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Correct.
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