When a corporation purchases treasury stock, the acquisition?

Question

Tomas Diaz

Social Studies

31 December, 04:18

When a corporation purchases treasury stock, the acquisition?

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Jamya Mccullough · Answer 1

When a corporation purchases treasury stock, the acquisition decreases the company’s total assets and total stockholders' equity.

These are mutually exclusive - even though they just bought the company, the assets and equity are still going to decrease, at least for the time being.