A corporate charter specifies that the company may issue 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:
A)3 million shares.
B)8 million shares.
C)9 million shares.
D)17 million shares.

Question

Quizplus · Accepted Answer

Treasury Stock reports shares that were previously issued to and owned by stockholders but have been reacquired and are now held by the corporation.The current number of shares of treasury stock equals the 3 million that were bought back.

A Corporate Charter Specifies That the Company May Issue Up