What is treasury stock?

1. It is retired stock that is held for some purpose.
2. It is stock issued by the firm and then repurchased but not retired.
3. It is retired stock that has never been issued to the stockholders.
4. It is stock issued by the treasury.

2. Corporations repurchase stock as treasury stock for all the following reasons, except to:

1. have stock available to distribute to employees for bonuses.
2. maintain a favorable market price for the stock.
3. improve the appearance of the firms financial ratios.
4. facilitate unwanted takeover or buyout attempts.