The Purchase of Treasury Stock Reduces the Number of Outstanding

question 11

True/False

The purchase of treasury stock reduces the number of outstanding shares, and if the treasury stock is subsequently resold, it is again classified as outstanding.

---

Definitions:

Price Inelastic

Describing a situation where the demand for a good or service is relatively unaffected by changes in its price.

Ticket Sales

The process through which individuals can purchase access to events such as concerts, movies, sports events, or performances.

Unit-elastic

A demand or supply whose price elasticity is equal to 1, indicating that the percentage change in quantity demanded or supplied is equal to the percentage change in price.

Price Elasticity

The degree to which the demand for a product reacts to variations in its price.