A reason a company may purchase treasury stock is to​ __________.

Question content area bottom
Part 1
A.
increase the amount of common stock issued
B.
increase the amount of common stock outstanding
C.
increase the number of shares that have voting rights
D.
reward valued employees with stock

1 answer

A reason a company may purchase treasury stock is to​ D. reward valued employees with stock.

Treasury stock can be used as part of employee compensation plans, such as stock options or stock grants, to incentivize and reward employees.

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