Question

Treasury stock is considered both issued and outstanding.
A. True
B. False

Answer 1

Treasury stock is not considered both issued and outstanding. It is the repurchased shares of a company's own stock that are held by the company.

Step-by-step explanation:

False

Treasury stock is not considered both issued and outstanding. It is the repurchased shares of a company's own stock that are held by the company. These shares are not included in the calculation of issued and outstanding shares.

For example, if a company has 1,000,000 shares of common stock issued and outstanding, and it repurchases 50,000 shares as treasury stock, the number of issued shares remains 1,000,000, but the number of outstanding shares decreases to 950,000 (1,000,000 - 50,000).