What type of stock is bought back from investors but is not recorded as an asset?

Treasury stock refers to shares that a company repurchases from its own investors. These shares are essentially taken out of circulation and are not considered assets on the company's balance sheet. Instead, they appear as a reduction in shareholders' equity. This means treasury stock does not provide voting rights or dividends, as the shares are held by the company itself and are not outstanding in the market.

This concept is significant because it reflects a company’s initiative to manage its capital structure and potentially increase shareholder value by reducing the number of shares available, which can increase earnings per share.

Common stock, preferred stock, and redeemable shares all represent forms of equity capital that are issued and contribute to the overall capital structure, but once repurchased, treasury stock does not contribute as an asset.