Treasury stock refers to shares of a company's stock that have been issued and subsequently repurchased by that same company. Maintaining an appropriate level of treasury stock allows a company to accomplish objectives like providing stock compensation to employees or preventing unwanted takeovers. Treasury stock does not entitle shareholders to voting rights or dividends. Companies may use treasury stock to improve their earnings per share or increase their stock price. On the balance sheet, treasury stock is listed as a contra equity account to reduce total shareholders' equity.