Define treasury stock and provide two reasons why a corporation would purchase treasury stock
What will be an ideal response
Treasury stock is a corporation's own stock that it has previously issued and later reacquired. A corporation may purchase treasury stock for the following reasons:
1. Management wants to increase net assets by buying low and selling high.
2. Management wants to support the company's stock price.
3. Management wants to avoid a takeover by an outside party by reducing the number of outstanding shares that have voting rights.
4. Management wants to reward valued employees with stock.
You might also like to view...
Which of the following statements is TRUE of performance reporting?
A) Responsibility reports should focus on the person responsible for unfavorable variances, rather than information. B) Managers should not be held accountable for uncontrollable variances. C) Only unfavorable variances in the reports should be explained. D) Every variance, regardless of magnitude, must be investigated by the managers.
Instant messages and text messages can become evidence in court cases and lawsuits
Indicate whether the statement is true or false
A ________ occurs when the merchant provides a signed assurance that the offer will remain open for a specified period of time
Fill in the blanks with correct word
Which type of retail store specializes in a given type of merchandise?
A. independent store B. department store C. discount store D. specialty store E. first-level store