When a corporation buys back its own previously issued common stock from the open market, the stock is reclassified as:

Explanation

Core Concept: Treasury stock consists of a corporation’s own shares that were issued and subsequently reacquired by the firm. It is reported as a contra-equity account on the balance sheet. Context/Distractors: Treasury stock carries no voting rights and pays no cash dividends. Exam Tip/Key Fact: Treasury stock reduces total shareholders’ equity.