SIE practice questionmediumTreasury Stock
Which of the following is TRUE about treasury stock?
- AIt does not pay dividends or confer voting rights✓ Correct answer
- BIt increases the number of outstanding shares
- CIt is considered for dividend payments
- DIt is issued to new investors
Explanation
Why A — It does not pay dividends or confer voting rights
Treasury stock is held by the issuer, does not pay dividends, and lacks voting rights. It decreases, not increases, outstanding shares and is not newly issued.
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