Define Treasury Shares,distinguishing Between Treasury Shares and Outstanding Shares

question 8

Essay

Define treasury shares,distinguishing between treasury shares and outstanding shares.Is a company limited in treasury shares that it may own? Briefly explain.

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Definitions:

Equilibrium Interest Rate

The interest rate at which the quantity of loanable funds demanded equals the quantity of loanable funds supplied, resulting in a balance between savings and investment.

Expected Rates

The anticipated rates of return, interest, or growth in various contexts such as finance, investment, and economic forecasting.

Loanable Funds

The money available for borrowing in the financial markets, derived from savings and influenced by interest rates.

Nominal Interest Rates

The interest rate before taking inflation into account, representing the face value rate at which money can be borrowed.