Question

Treasury stock involves shares which are: authorized and issued, but not currently outstanding. not yet authorized. authorized, issued, and outstanding. issued and outstanding, but not yet authorized.

Answer 1

Answer:

Authorized and issued, but not currently outstanding

Explanation:

Option B is wrong because treasury stock is already authorized by the securities and exchange commission.

Option D is incorrect, as unauthorized shares cannot be issued or outstanding.

Option C is wrong because treasury stock is authorized and issued. As those shares are repurchased, those are not outstanding. Therefore, option A is correct.