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Question 1 1 pts [p 426-432] When a corporation repurchases its own stock, the repurchased shares may be retired or may treated as treasury stock.

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Question 1 1 pts [p 426-432] When a corporation repurchases its own stock, the repurchased shares may be "retired" or may treated as "treasury stock." This distinction is archaic it is not needed in the Internet age when most shares of stock are issued electronically. We still use these distinctions because some companies have been in business for decades and originally issued shares of stock on paper. Most of the following are good and true explanations of why a corporation might buy back its own stock. What is NOT a good explanation for why corporations buy back their own stock? To increase the number of shareholders In attempt to avoid a hostile take-over To have shares available for employee compensation, such as stock option plans To have shares available to use to acquire another corporation

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