Treasury Stock

Also called Treasury Shares · Repurchased Shares

Treasury stock refers to shares that a company has issued and later repurchased from shareholders. These shares are not considered outstanding, do not pay dividends, and do not carry voting rights, and they are recorded as a contra-equity account (negative value) under shareholders’ equity on the balance sheet.

💡 You won’t need to know this for an interview

Why Treasury Stock matters in investment banking interviews

Low priority for interviews, but worth recognizing so you don't stall if it appears in a balance sheet you're handed. It's a contra-equity account — buybacks reduce equity rather than creating an asset.