Series 7 - General Securities Representative Exam

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All of the following are true of Treasury Stock EXCEPT

It increases shareholders equity
A
It is bought back by the issuing company
B
It reduces the float
C
It is not included in EPS calculations
D

Explanations

Treasury stock is stock that the issuing company has bought back. It has no bearing on EPS calculations, reduces the publicly traded float and decreases shareholder's equity as they shares are now owned by the issuing company

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