A corporate charter specifies that the company may sell up to 20 million shares of stock. The company sells 12 million shares to investors and later buys back 3 million shares. The number of issued shares after these
Transactions have been accounted for is:

Question

Quizplus · Accepted Answer

The number of issued shares is the total number of shares that have been sold to investors. The company initially sold 12 million shares, and buying back 3 million shares does not change the number of issued shares; it only affects the number of outstanding shares. Therefore, the number of issued shares remains 12 million.

A Corporate Charter Specifies That the Company May Sell Up