The Purchase of Treasury Stock Would Be Reported on a Statement

question 59

Multiple Choice

The purchase of treasury stock would be reported on a statement of cash flows as a:

• A)cash inflow under the operating activities.
• B)cash outflow under the financing activities.
• C)cash inflow under the investment activities.
• D)cash inflow under the financing activities.

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Definitions:

Going Public

The act of selling stock to the public at large by a closely held corporation or its principal shareholders.

Primary Market

The financial market where new securities are issued and sold for the first time to investors, facilitating funds raising for corporations and governments.

Investment Banker

A professional who advises and assists companies on capital market transactions like IPOs, mergers, and acquisitions.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.