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Say a company purchases common stock, and we call this treasury stock. What will not happen because of this treasury stock purchase (everything else staying
- Say a company purchases common stock, and we call this treasury stock. What will not happen because of this treasury stock purchase (everything else staying the same)?
- Earnings per share will increase
- Treasury stock will show as a contra-stockholders equity account on the balance sheet
- The company will show a gain from purchase of treasury stock on the income statement
- Fewer shares of common stock are outstanding.
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