Treasury stock refers to previously issued shares of a company that are repurchased by the company and held as an asset on its balance sheet. These shares are not outstanding and do not have voting rights or receive dividends. They may be reissued or retired in the future. Therefore, choice D is the best answer as it accurately describes treasury stock.

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Treasury Stock Is

Question 85

Multiple Choice

Treasury stock is

A) shares owned by the directors of a company.
B) shares owned by the management of a company.
C) shares that are not yet sold but could be sold at any time by a company.
D) previously issued shares of a company that are now held by the company.
E) shares of a company held in reserve to eventually retire the debt of the company.

Correct Answer: