When a firm repurchases its own stock and retires it,the stock is called treasury stock.

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When a firm repurchases its own stock and retires it, the stock is not called treasury stock. Treasury stock refers to shares that have been repurchased by the company and are held in the company's treasury. Retired shares are permanently canceled and cannot be reissued, whereas treasury shares can be reissued or sold by the company in the future.

When a Firm Repurchases Its Own Stock and Retires It,the