Each quarter, the Treasurer Company ABC, a publicly-traded common company, reviews possible investment opportunities and, only then, will they determine how much of its own stock to repurchase. Select one of the following questions to discuss:
- How is treasury stock purchased? What ethical issues may arise from buying back company stock?
- What would motivate the Treasurer to purchase his or her company’s stock?
- How is the re-purchased stock accounted for differently than common and preferred stock?
