× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
New Topic  
dp dp
wrote...
Posts: 296
Rep: 0 0
5 years ago
Define treasury stock and provide two reasons why a corporation would purchase treasury stock.
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
Read 54 times
1 Reply

Related Topics

Replies
wrote...
5 years ago
 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.
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1314 People Browsing
 118 Signed Up Today
Related Images
  
 278
  
 415
  
 302
Your Opinion
Which is the best fuel for late night cramming?
Votes: 145