SIE Exam Question 184: Answer and Explanation

Question: 184

What is the name for stocks that have been sold and then repurchased (and held) by the issuing firm?

• A. Outstanding stock
• B. Treasury stock
• C. Issued stock
• D. Restricted stock

Correct Answer: B

Explanation:

Treasury stock is the name for stocks that have been sold and then repurchased (and held) by the issuing firm. Issued stock includes all company shares that have been sold to the public. Outstanding stock includes only those issued shares that are still held by the public (i.e., have not been repurchased by the company). Restricted stock are shares that are typically issued to people within the company, such as executives or board members, as part of their compensation package. The shares are restricted in that there are limitations placed on when and how they may be traded.