Shares of Stock That Have Been Issued and Subsequently Repurchased

question 34

True/False

Shares of stock that have been issued and subsequently repurchased by the issuer are known as treasury stock.

---

Definitions:

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, indicating the impact of the last dollar earned on one's tax obligations.

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income.

CCA Class

Refers to the classification system for capital cost allowance purposes in Canada, determining the rate at which assets can be depreciated for tax purposes.

Marginal Tax Bracket

The tax rate that applies to the final dollar of taxable income for a person or organization.