Answer : Treasury Stock
:
- Treasury stock or reacquired stock is previously outstandind
stock that is bought back from shareholders by the issuing
company.
- Treasury stock results in the total number of outstanding
shares on the open market decreases.
Reasons for
treasury stock has no voting rights are as follows
:
- Treasury stock have been bought back by a company can either be
cancelled or held for reissue.
- Treasury shares do not pay dividends.
- The possession of these shares do not give company the right to
either receive any assets on company liquidation or to exercise pre
exemptive rights as a shareholder