Treasury stock increases the number of shares outstanding.

Name: Treasury stock increases the number of shares outstanding.
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Question

Quizplus · Accepted Answer

Treasury stock represents the company's own shares that have been bought back from shareholders. When a company buys back its own shares, it reduces the number of shares outstanding, which means that the treasury stock does not increase the number of shares outstanding, but rather decreases them.

Treasury Stock Increases the Number of Shares Outstanding