Reacquired stock

Reacquired stock is shares that the issuing entity has purchased back from investors. These shares are no longer classified as being outstanding, and cannot be used to vote on issues brought before shareholders for their approval. The amount paid to buy back stock is reported as a contra equity account in the equity section of the issuing company's balance sheet; this is a deduction from the equity balance.

Reacquired stock is also known as treasury stock.

Related Courses

Accountants' Guidebook 
GAAP Guidebook