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Corporations purchase and hold their own stock, known as treasury stock, for several reasons. Identify which of the following is not a reason that a

Corporations purchase and hold their own stock, known as treasury stock, for several reasons. Identify which of the following is not a reason that a corporation would buy treasury stock.

  1. To reduce the market value of the common shares outstanding
  2. To show management confidence in the price
  3. To use their shares to acquire another carporation
  4. To reissue them to employees

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