A company would not acquire treasury stock
A) in order to reissue shares to officers.
B) as an asset investment.
C) in order to increase trading of the company's stock.
D) to have additional shares available to use in acquisitions of other companies.

Question

Quizplus · Accepted Answer

Companies would not acquire treasury stock as an asset investment. Treasury stock represents shares of a company that has been repurchased by the company itself, and it is not an asset in the traditional sense. It is not used to generate income or increase trading of the company's stock. Instead, it is held temporarily and may be used for a variety of purposes, including to reissue to officers or to have additional shares available to use in acquisitions of other companies.

A Company Would Not Acquire Treasury Stock