SIE practice questionmediumEquity — Treasury Stock
Treasury stock refers to shares that have been:
- AHeld by the company's transfer agent for new investors
- BIssued by the U.S. Treasury Department
- CAuthorized but never issued by the corporation
- DIssued and repurchased by the corporation✓ Correct answer
Explanation
Why D — Issued and repurchased by the corporation
Treasury stock consists of shares that were previously issued to the public and subsequently repurchased by the corporation. These shares do not carry voting rights, do not receive dividends, and are not considered outstanding. They are different from authorized-but-unissued shares (A) and have nothing to do with the U.S. Treasury (C).
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