The maximum number of shares a firm can issue is known as:
A) issued but not outstanding
B) issued and outstanding
C) authorized shares
D) none of the above

Question

Quizplus · Accepted Answer

The maximum number of shares a firm can issue is known as authorized shares. Option A is incorrect because issued but not outstanding shares refer to shares that have been issued but are not currently owned by shareholders. Option B is incorrect because issued and outstanding shares refer to shares that have been issued and are currently owned by shareholders. Option D is incorrect because the question pertains to the maximum number of shares a firm can issue, which is authorized shares.

The Maximum Number of Shares a Firm Can Issue Is