Does treasury stock receive dividends?
Understand the Problem
The question is asking whether treasury stock, which refers to shares that were once a part of the outstanding shares of a company but were later repurchased by the company itself, is eligible to receive dividends. This requires an understanding of stock ownership and dividend distribution policies.
Answer
Treasury stock does not receive dividends.
Treasury stock does not receive dividends.
Answer for screen readers
Treasury stock does not receive dividends.
More Information
Treasury stock consists of shares that were issued and later reacquired by the issuing company. These shares do not have voting rights and are not entitled to dividends.
Sources
- What is treasury stock? | AccountingCoach - accountingcoach.com
- Treasury Stock - Overview, Share Repurchases, Limitations - corporatefinanceinstitute.com
- Treasury stock - Wikipedia - en.wikipedia.org
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