Treasury stock is ________.
A) unissued shares of stock
B) the number of shares of stock that cannot be sold in the future
C) shares of stock held in other companies for investment purposes
D) shares of stock already issued that are later repurchased by the corporation that originally issued them

Question

Quizplus · Accepted Answer

Treasury stock refers to shares of stock that have already been issued by a corporation and are later repurchased by the same corporation. These shares can be held by the corporation as an investment or used for other purposes such as employee stock option plans or stock dividends. Option A is incorrect because unissued shares of stock have not yet been issued by the corporation. Option B is incorrect because there is no limit on the sale of treasury stock, although the corporation may decide to hold onto these shares instead of reselling them. Option C is incorrect because treasury stock refers to shares of the same corporation, not other companies.

Treasury Stock Is ________