Treasury stock can be used to do which of the following?
I. pay for an acquisition
II. pay the company employees
III. pay stock dividends
IV. cover employee stock option plan contributions
A) I and III only
B) II and IV only
C) III and IV only
D) I, III and IV only

Question

Quizplus · Accepted Answer

Treasury stock can be used to pay for an acquisition, pay stock dividends, and cover employee stock option plan contributions. It cannot be used to directly pay company employees, but it can indirectly benefit them by increasing the value of their shares through share buybacks.

Treasury Stock Can Be Used to Do Which of the Following