What are reacquired shares classified as?

Reacquired shares are classified as treasury stock. Treasury stock refers to shares that were once a part of the outstanding shares of a company but have been repurchased by the company itself. These shares are held in the company's treasury and are not considered when calculating earnings per share or dividends, as they do not represent ownership in the company.

The classification as treasury stock implies that the company has chosen to buy back its own shares, possibly for various strategic reasons such as increasing shareholder value, reducing the number of shares in circulation, or preparing for future employee compensation plans. Treasury stock can also be sold again or retired, impacting the company's equity structure depending on the management's strategy.

Other classifications, such as restricted stock, preferred shares, or sinking fund stock have distinct characteristics and purposes that differentiate them from treasury stock, making treasury stock the correct classification for reacquired shares.