Which of the following is not a reason for a corporation to acquire treasury stock?

A) to reduce the likelihood of being acquired by another company
B) to maintain the market price of the company's stock
C) to reduce the earnings per share
D) to be used in the acquisition of other companies

Treasury Stock

Treasury stock consists of shares that were issued and subsequently reacquired by the issuing company, thereby reducing the amount of outstanding stock on the open market.

Acquire Treasury Stock

This refers to the purchase of a company's own shares from the market, which reduces the amount of outstanding stock.

Earnings Per Share

A common financial metric used to indicate the profitability of a company on a per-share basis, calculated as net income divided by the number of outstanding shares.