a-corporation-has-30000-issued-shares-and-3000-shares-in-treasury-stock-how-does

Question

A corporation has 30,000 issued shares and 3,000 shares in treasury stock. How does treasury stock affect the calculation of outstanding shares?

Accepted Answer

Treasury stock reduces the number of outstanding shares by the number of shares repurchased.

Answer

Treasury stock has no effect on the number of outstanding shares.

Answer

Treasury stock is included in the calculation of issued shares but not outstanding shares.

Answer

Treasury stock increases the number of outstanding shares by the number of shares repurchased.