Final answer:
Treasury stock refers to the shares of a company's own stock that it has bought back from shareholders. It is not actively traded and is considered retired. It is reacquired by the company and fully paid for.
Step-by-step explanation:
Treasury stock refers to the shares of a company's own stock that it has bought back from shareholders. Each of the following statements is correct regarding treasury stock except that it has been issued. Treasury stock is not actively traded and is considered retired. It is reacquired by the company and fully paid for.
The correct answer is that treasury stock has not necessarily been retired. Unlike retired shares, treasury stock consists of shares that have been issued and fully paid for, which are then reacquired by the company and held in its treasury. These shares can be reissued, sold, or retired at a later date, depending on the company's decision. Treasury stock reduces shareholders' equity and does not pay dividends or have voting rights while held by the company.