Corporations can repurchase previously issued stock. When repurchased, the corporation can choose to retire the stock or
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Question:
Corporations can repurchase previously issued stock. When repurchased, the corporation can choose to retire the stock or hold it for reissuance. Repurchased stock is referred to as treasury stock.
Treasury stock is a contra-equity account that reduces the equity section of the balance sheet.
- Why would an organization repurchase its stock?
- Find an example of a publicly traded company that has treasury stock on its balance sheet, and comment on how the treasury stock affected the balance sheet.
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