Which of the following statements concerning treasury stock is true?
A) It carries voting rights.
B) It participates in stock splits.
C) It receives dividend distributions.
D) It retains the preemptive right.

Question

Quizplus · Accepted Answer

Treasury stock refers to shares that were issued and later reacquired by the issuing corporation. While these shares do not carry voting rights, receive dividends, or retain preemptive rights, they are still affected by stock splits. This means if a company decides to split its stock, the treasury stock will also be split in the same ratio.

Which of the Following Statements Concerning Treasury Stock Is True