Treasury stock arises when the board of directors elects to have a company buy back...
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Accounting
Treasury stock arises when the board of directors elects to have a company buy back shares from shareholders. This purchase reduces the amount of outstanding stock on the open market.
Some have suggested that Treasury stock purchases are a good method for "controlling" the company and influencing share price... how would you respond to that suggestion? Is it an effective tool for that goal? If not, what is a more effective option?
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