Which of the Following Is True of Treasury Shares

question 93

Multiple Choice

Which of the following is true of treasury shares?

• A)They cannot be issued by the corporation.
• B)They cannot be voted by the corporation.
• C)They are owned by shareholders.
• D)They are entitled to receive dividends.

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Definitions:

Futures Contract

An agreement to buy or sell an asset at a predetermined future date and price.

Clearinghouse

An intermediary entity between buyers and sellers in financial markets that ensures the orderly settlement of trades.

Offset

To counterbalance, compensate, or neutralize the effect of something by applying an opposing force or effect.

Futures Contract

A legally binding contract to acquire or dispose of a specific item at an agreed-upon price at a future date.