SIE practice questionmediumTreasury Stock
What is the status of voting rights and dividend eligibility for treasury stock?
- ATreasury stock receives dividends but can't vote.
- BTreasury stock has voting rights but receives no dividends.
- CTreasury stock has no voting rights and receives no dividends.✓ Correct answer
- DTreasury stock has both voting rights and receives dividends.
Explanation
Why C — Treasury stock has no voting rights and receives no dividends.
Treasury shares lose both voting rights and dividend eligibility since they are held by the issuing company. The other options incorrectly assign rights to treasury shares.
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