The Curious Fiction of Treasury Shares

Abstract

NJ AN able series of articles on the California Corporate Securities Act', Mr. Dahlquist takes polite issue with the view of the writer that the so-called sale of stock by a corporation is in reality the issue of a new security. The controversy over this point suggests the need of a discussion on principle of the peculiar metaphysical fiction of the law as to treasury shares,2 which often puzzles the accountant and facilitates certain financial abuses.