In what way can treasury shares be reissued?

Treasury shares, which are shares that a corporation has issued and later repurchased, can indeed be reissued by the corporation. The correct answer indicates that they can be reissued at any price below their par value if that price is deemed reasonable. This reflects a common practice in which a company does not have to adhere strictly to the par value of the shares when reissuing them from its treasury.

When a corporation reissues treasury shares, it has the flexibility to determine the reissue price based on market conditions and strategic considerations. The primary condition is that selling these shares below par value should be reasonable, aligning with the interests of both the corporation and its shareholders.

This principle allows for more dynamic financial management, as a corporation might need to adjust the price of its shares in response to market demand or other strategic factors. As such, reissuing shares can be a tool for raising capital or meeting other operational needs without being confined strictly to par value constraints.

Options suggesting that treasury shares can only be reissued at par value, only at a premium, or that they cannot be reissued do not reflect the flexibility that legal frameworks typically provide to corporations regarding the reissuance of treasury stock. Therefore, the correct understanding of how treasury shares