Which of the following statements about treasury stock is true?
A)Few corporations have treasury stock.
B)Purchasing treasury stock is done to eliminate hostile shareholder buyouts.
C)Companies acquire treasury stock to increase the number of shares outstanding.
D)Companies acquire treasury stock to decrease earnings per share.

Question

Quizplus · Accepted Answer

Purchasing treasury stock can be a strategy to prevent hostile takeovers by reducing the number of shares available for potential acquirers.

Which of the Following Statements About Treasury Stock Is True