The shares can be officially retired or they can be referred to as treasury shares, either of which are acceptable accounting options for the transaction.
Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual earnings in the form paid dividends. Stockholders of a company that doesn't pay dividends are not included in the distribution of profits.
People acquire and firm's capital as a way to get exposure to both the health and growth of the global economy as well as a specific firm. Interest will play a role in your choice of investing in stocks or trading on their price.
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