When a company repurchases its shares but does NOT retire them, these shares would said to be
A) authorized, issued and outstanding.
B) authorized and issued, but not outstanding.
C) redeemable.
D) authorized and unissued but not outstanding.

Question

Quizplus · Accepted Answer

When a company repurchases its shares but does not retire them, these shares are considered to be "authorized and issued, but not outstanding." This is because the shares remain authorized by the company and have been issued in the past, but after repurchase, they are held in the company's treasury and are not available to be bought or sold by investors, thus not considered outstanding.

When a Company Repurchases Its Shares but Does NOT Retire