Treasury stock is stock that has been issued but is no longer outstanding.

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Treasury stock refers to shares that a company has issued and subsequently reacquired, either through a share repurchase program or other means. These shares are considered issued because they were once part of the shares available to the public, but they are not considered outstanding because they are not currently held by external investors.When a company buys back its own shares, those shares become treasury stock and are held by the company itself. These shares do not confer voting rights or the right to receive dividends, and they are not included in earnings per share (EPS) calculations or when determining the total number of outstanding shares.
The reasons for a company to repurchase its own shares and hold them as treasury stock can vary. It may be done to reduce the number of shares on the market, which can help increase the value of the remaining shares. It can also be used to prevent hostile takeovers, to have shares available for employee compensation plans, or to use in acquisitions or mergers.
Accounting for treasury stock can be done using one of two methods: the cost method or the par value method. Under the cost method, the treasury stock is recorded at the cost to repurchase the shares. Under the par value method, the treasury stock is recorded at the stock's par value, with the excess of the purchase price over par value being deducted from additional paid-in capital or retained earnings.
Treasury stock can be reissued by the company at a later date, either by selling it back to the public or by using it for corporate purposes such as employee stock option plans. If the company decides to retire the treasury stock, it permanently reduces the number of issued shares, and the shares cannot be reissued in the future.

Treasury Stock Is Stock That Has Been Issued but Is