Asked by Courtney Gardner on Jun 25, 2024
Verified
Which one of the following statements concerning treasury stock is true?
A) It carries voting rights.
B) It participates in stock splits.
C) It receives dividend distributions.
D) It retains the preemptive right.
Treasury Stock
Shares that were issued and later reacquired by the corporation, reducing the amount of outstanding stock on the open market.
Voting Rights
The entitlement of shareholders to vote on company matters, typically exercised at annual meetings or special resolutions, often proportional to the number of shares held.
Stock Splits
A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares.
- Become familiar with the financial accounting methods applied to treasury stock transactions.
Verified Answer
Learning Objectives
- Become familiar with the financial accounting methods applied to treasury stock transactions.
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