Final answer:
Treasury stock refers to shares that a company has repurchased and holds in its treasury. These shares do not have voting rights, nor do they receive dividends. They are not necessarily retired upon purchase and can be reissued or later retired.
Step-by-step explanation:
Treasury stock has several characteristics, two of which are correctly identified by options A and D. Specifically:
- A. It is stock that is repurchased by the company: Companies buy back their own shares for various reasons, such as to reduce the number of shares available on the market or to increase shareholder value.
- B. It does not receive a dividend: Treasury stock does not have the right to receive dividends because these shares are considered to be out of circulation and the company cannot pay itself dividends.
- C. It is generally not immediately retired when purchased—it can be held, reissued, or later retired.
- D. It has no voting rights: While held as treasury stock, these shares do not have voting rights in company decisions, effectively reducing the total voting shares outstanding.
Therefore, the correct characteristics of treasury stock are that it is repurchased by the company and it does not have voting rights or receive dividends.