The purchase of treasury stock returns ________ to the stockholders but also ________.
A)stock;increases their ownership of the company.
B)stock;decreases their ownership of the company.
C)cash;increases their ownership of the company.
D)cash;decreases their ownership of the company.

Question

Quizplus · Accepted Answer

The purchase of treasury stock returns cash to the stockholders as the company buys back its shares, reducing the number of shares outstanding and thus decreasing the stockholders' ownership percentage in the company.

The Purchase of Treasury Stock Returns ________ to the Stockholders