Products & Their RisksQuestion 10 of 398
Treasury stock refers to shares that:
a.Are issued by the U.S. Department of the Treasury
b.Have never been issued by the corporation
c.Were issued and later repurchased by the issuing corporation
d.Are held only by the company's board of directors
Explanation
Treasury stock is shares the corporation issued and then bought back; it has no voting rights and receives no dividends while held by the company. It is unrelated to the U.S. Treasury, is not unissued, and is not restricted to directors.
Law Reference: Securities Exchange Act of 1934Practice all 398 questions free — no signup required.
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