Treasury shares are more common in the United States than in Canada. In the U.S., companies are allowed to repurchase their own shares and hold them as treasury shares, whereas in Canada, this practice is heavily regulated and restricted. Therefore, treasury shares are not as prevalent in Canada as they are in the United States.

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Treasury Shares

Question 106

Multiple Choice

Treasury shares:

A) are more common in Canada,than they are in the United States.
B) are more common in the United States,than they are in Canada.
C) are illegal in Canada and the United States.
D) are equally common in Canada and the United States.

Correct Answer: