Question

Common stock that was once issued by a corporation but later repurchased by the same corporation is called:

Answer 1

The common stock repurchased by a corporation is known as treasury stock. It is bought back for various strategic reasons and does not directly benefit the company financially when traded between investors.

Step-by-step explanation:

Common stock that was once issued by a corporation but later repurchased by the same corporation is called treasury stock or treasury shares. Corporations may buy back their own shares for a number of reasons, such as to consolidate ownership, to boost the stock's value by reducing supply, or to prevent other shareholders from taking a controlling stake.

When a firm sells stock to the public, this is known as an initial public offering (IPO). After the IPO, the buying and selling of stock occur between investors, and the company that originally issued the shares does not receive any direct financial return from these transactions. Owners of stock, or shareholders, gain from their investment through dividends and capital gains.