Which of the following statements is a reason why a company would buy treasury stock?

Question

Quizplus · Accepted Answer

Common reasons include (1)to have stock available to give employees pursuant to stock option plans, (2)to accumulate stock in preparation for a merger or business combination, (3)to reduce the number of shares outstanding in order to increase earnings per share, (4)to keep the price of the stock high when it appears to be falling,and (5)to avoid a hostile takeover.

Which of the Following Statements Is a Reason Why a Company