A corporate charter specifies that the company may sell up to 20 million shares of stock.The company sells 12 million shares to investors and later buys back 3 million shares.The current number of shares of treasury stock after these transactions have been accounted for is:

Question

Quizplus · Accepted Answer

The company initially sold 12 million shares and then repurchased 3 million shares. The repurchased shares become treasury stock, so the current number of treasury stock is 3 million shares.

A Corporate Charter Specifies That the Company May Sell Up