If a company purchases shares of another company,it records this transaction as treasury stock.

Name: If a company purchases shares of another company,it records this transaction as treasury stock.
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When a company purchases shares of another company, it is recorded as an investment and not as treasury stock. Treasury stock is the company's own stock that has been purchased back and is held in the company's treasury for future use.

If a Company Purchases Shares of Another Company,it Records This