Common Stock
Which of the following is TRUE about treasury stock?
Treasury stock: issued then repurchased. No vote, no dividends. Outstanding = Issued - Treasury.
Complete Analysis & Legal Rationale
Treasury stock is previously issued stock that the company has reacquired through buybacks. Treasury shares do not vote, do not receive dividends, and are not counted as outstanding shares for per-share calculations. They can be reissued, retired, or used for employee compensation plans.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.