Treasury Stock
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
In the room
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.