Which of the Following Is Not a Reason for a Corporation

question 100

Multiple Choice

Which of the following is not a reason for a corporation to acquire treasury stock?

• A)to reduce the likelihood of being acquired by another company
• B)to maintain the market price of the company's stock
• C)to reduce the earnings per share
• D)to be used in the acquisition of other companies

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Definitions:

Market Index

A statistical measure that represents the overall performance of a specific set of stocks or securities.

Wilshire 5000

A stock market index designed to measure the performance of all U.S.-headquartered equity securities with readily available price data.

NAV

Stands for Net Asset Value, which is the value per share of a mutual fund or ETF calculated by dividing the total value of all the securities in the portfolio by the number of shares outstanding.

Income Distributions

Payments made from a fund or account to investors, which can include dividends from stocks or interest from bonds.