In stock-market investing, what are shares repurchased by the issuing company called?

Shares repurchased by the issuing company are called treasury stock. These shares were previously issued to investors but are later reacquired by the company and held in its own treasury.

Treasury stock usually has no voting rights, does not receive dividends, and is excluded from the calculation of shares outstanding. Because it is no longer held by outside investors, buying it back can reduce the number of shares used in per-share calculations such as earnings per share.

Companies may hold treasury stock for several reasons, including employee compensation plans, future acquisitions, or supporting a share-repurchase program. The shares can later be reissued or retired. Treasury stock is recorded as a deduction from shareholders’ equity rather than as an asset.

Treasury stock is different from unissued shares, which a company is authorized to sell but has never issued. It is also distinct from preferred stock, which describes a class of ownership with special rights rather than shares held by the issuing company.