CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following is not true concerning treasury stock?
A. Treasury stock can be reissued at less than the par value without negative consequences.
B. Treasury stock purchases are considered purchases of assets.
C. Treasury shares can be held for an indefinite period of time.
Explanation: Treasury stock purchases are not considered purchases of assets. Treasury stock purchases reduce the assets (cash) and stockholders' equity of the company.

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