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Which of the following is not a reason for which a company may purchase treasury​ stock?...

Which of the following is not a reason for which a company may purchase treasury​ stock?

A.

to increase net assets by buying low and selling high

B.

to avoid a takeover by an outside party by increasing the number of outstanding shares that have voting rights

C.

to support the​ company's stock price

D.

to reward valued employees with stock

Solutions

Expert Solution

Answer) A.to increase net assets by buying low and selling high

Companies generally don't buy their own stocks from the markets to make profits and increase net assets. These would affect the volatility of the stock.

ekkarill92 answered 2 years ago
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