Which of the following is not a reason for a corporation to acquire treasury stock?
A)to reduce the likelihood of being acquired by another company
B)to maintain the market price of the company's stock
C)to reduce the earnings per share
D)to be used in the acquisition of other companies

Question

Quizplus · Accepted Answer

Acquiring treasury stock would not be done to intentionally reduce the earnings per share. The other options - reducing the likelihood of being acquired, maintaining market price, and being used in acquisition of other companies - are all potential reasons for acquiring treasury stock.

Which of the Following Is Not a Reason for a Corporation