Treasury Stock
Treasury stock refers to shares that a company has issued and later repurchased, and which are held in the company's treasury; these shares are considered issued but not outstanding and do not have voting rights or rights to dividends while in treasury.
Example: In 2023, Company ABC repurchased 2 million shares at $20 each and recorded them as treasury stock; as a result, issued shares remained the same while outstanding shares decreased by 2 million and total equity declined by $40 million.
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