When the Selling Price of Treasury Shares Is Greater Than

question 28

Multiple Choice

When the selling price of treasury shares is greater than its cost, the company credits the difference to

• A) Gain on Sale of Treasury Shares.
• B) Share Premium-Treasury.
• C) Share Premium-Ordinary.
• D) Treasury Shares.

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Definitions:

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

Initial Margin

The minimum amount of equity required to enter into a position as security for performance, used in futures and margin trading.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account.

Margin Call

A demand by a broker that an investor deposit additional money or securities to cover possible losses.