Economics · Corporate Finance and Accounting
Which of the following best defines a 'treasury share'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A share created when a company repurchases its own shares for cash or out of distributable profits✓
- 2A share given fully paid to existing members as a bonus
- 3A share offered to existing members to purchase pro-rata to their holding
- 4A share issued on terms that it may be bought back by the company at a future date
Correct answer
A share created when a company repurchases its own shares for cash or out of distributable profits
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