Shares of outstanding stock always equal the number of shares of authorized stock.

Question

Quizplus · Accepted Answer

The number of authorized shares is the maximum number of shares a company can issue, but they may not necessarily issue all of them. The number of outstanding shares is the actual number of shares that have been issued and are owned by shareholders. Therefore, the number of outstanding shares can be less than the number of authorized shares.

Shares of Outstanding Stock Always Equal the Number of Shares