Which term refers to stock that a company has issued and subsequently repurchased from shareholders?

• A. Treasury Stock
• B. Issued Stock
• C. Common Stock
• D. Ex-Dividend Date

Answer: (A)

Treasury stock refers to shares a company has issued and later bought back. These shares are held by the company and are not considered outstanding, so they don’t carry voting rights or receive dividends while in treasury. The company can hold them, retire them, or reissue them later to raise capital or fund employee plans. This concept matters because repurchased shares affect the number of shares outstanding and, in turn, metrics like earnings per share and the owners’ equity on the balance sheet. The other terms don’t fit: issued stock is the total shares the company has issued (including those later repurchased); common stock is a type of equity, not the act of repurchasing; and ex-dividend date is about dividend eligibility and not about stock repurchase.