Which of the following statements is true with regard to equity capital?

Question

Quizplus · Accepted Answer

The number of shares actually in the hands of stockholders are called outstanding shares. B is incorrect because many corporations have multiple classes of stock, such as common stock and preferred stock. C is incorrect because preferred stock represents a different class of shares with different rights than common stock, but it is not permanently retired. D is incorrect because issued shares represent the number of shares that have been authorized for issuance, not the maximum number that can be issued.

Which of the Following Statements Is True with Regard to Equity