Treasury stock isa. stock issued by the U. S. Treasury Department. b. stock purchased by a corporation and held as an investment in its treasury. c. corporate stock issued by the treasurer of a company. d. a corporation's own stock, which has been reacquired and held for future use.

Question

Business

Rachael Atkins

15 May, 21:16

Treasury stock isa. stock issued by the U. S. Treasury Department. b. stock purchased by a corporation and held as an investment in its treasury. c. corporate stock issued by the treasurer of a company. d. a corporation's own stock, which has been reacquired and held for future use.

+2

Answers (1)

Know the Answer?

Phoenix Mullins · Answer 1

d. a corporation's own stock, which has been reacquired and held for future use.

Explanation:

Treasury Stock shares wich are purchased by the same company who issued. It is the purchase of own shares.

Some of the reasons why a firm will purchase his own shares:

It could be done for reselling purpose as it will purchase at a given price and sell them at greater price. This is done to avoid issue new shares and dilute the current stockholders participation.

To prevent hostile takeovers the company will purchase his shares to denie the acquisition

To avoid a fall in the share price when the shares are underperforming.

To retire shares, taken them out of circulation and increase participation and dividends on the remaining shares.