CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Shares of stock that have been bought back and are held by the company are called ______.

A. treasury stock
B. authorized stock
C. issued stock
Correct Answer: A

Shares of stock that have been bought back and are held by the company are called treasury stock.

User Contributed Comments 4

User Comment
CFAonTheBrain what is authorized stock?
Htoon Authorized stocks are stock that the company files at the SEC that it will issue stock during certain years.
SaeedAlam Authorized stock is the max. amount of stock that a company can issue based on a vote by its shareholders.
sboyadjiev Authorized shares are the number of shares that may be sold under the firm's articles of incorporation.
Issued shares are the number of shares that have actually been sold to shareholders.
Outstanding Shares= Issued shares - shares that have been reacquired by the firm, i.e. treasury stock.
Hope this would help
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