Final answer:
Treasury stock refers to shares that a company has repurchased from investors (option a). These shares do not receive dividends and have no voting rights, but they are not automatically retired upon purchase.
Step-by-step explanation:
The characteristics of treasury stock are as follows:
- a. It is stock that is repurchased by the company. This means the company has bought back its own shares from the stock market. Once repurchased, these shares are known as treasury stock.
- b. It does not receive a dividend. Treasury shares do not have dividend rights, meaning no dividend is paid on these shares.
- c. It is not automatically retired when it is purchased. Instead, it may be held for reissue or eventually retired at the discretion of the company.
- d. It has no voting rights. Treasury stock, being owned by the company itself, does not confer voting rights in shareholder meetings.
Therefore, the correct characteristics of treasury stock that are mentioned above are a. It is stock that is repurchased by the company, b. It does not receive a dividend, and d. It has no voting rights.