Which type of stock refers to shares that have been reacquired by the issuing corporation?

The correct answer is treasury share. Treasury shares are those that have been repurchased by the issuing company and are held in the company's treasury. These shares do not receive dividends and do not have voting rights. Corporations may decide to reacquire their own shares for various reasons, such as to enhance shareholder value, consolidate ownership, or manage earnings per share.

Understanding treasury shares is essential because it impacts the overall share structure of a corporation. When shares are repurchased, the total number of shares outstanding is reduced, which can potentially increase the value of remaining shares for investors. This is a common practice in corporate finance and can provide strategic advantages to the corporation.

The other types of shares listed in the choices have distinct characteristics that set them apart. Promotion shares often refer to shares granted to individuals for their role in the promotion of the company, founder's shares are typically issued to the original founders, often carrying special voting rights, and convertible shares allow shareholders to convert their shares into another form of equity, usually common shares, under certain conditions. These distinct characteristics underscore why treasury shares are the only category that specifically pertains to shares reacquired by the issuing corporation.