The authorized shares of capital stock is the number of shares
A)outstanding
B)subscribed
C)that may be issued
D)reacquired

Question

Quizplus · Accepted Answer

Authorized shares of capital stock refers to the maximum number of shares that a corporation is legally allowed to issue. These shares may or may not have been issued to investors, which is why they are different from outstanding shares (shares that have been issued to and are currently held by shareholders). Subscribed shares are shares that investors have agreed to purchase but may not have paid for yet. Reacquired shares refer to shares that were previously issued and then bought back by the corporation.

The Authorized Shares of Capital Stock Is the Number of Shares