Which of the following are TRUE of treasury stock?

Which of the following are TRUE of treasury stock?


I. Treasury stock is authorized but not yet issued.

II. Treasury stock may pay a reduced dividend.

III. Treasury stock is issued but has no voting or dividend rights.

IV. Treasury stock is previously issued stock that has been repurchased by the issuing company.


A) I and II.

B) I and III.

C) II and IV.

D) III and IV.


Answer: D) III and IV.


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