The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 60,000 shares were originally issued and 5,000 were subsequently reacquired.What is the number of shares outstanding?

Question

Quizplus · Accepted Answer

Outstanding shares are the number of shares that have been issued and are currently held by shareholders. To find the number of outstanding shares, we need to subtract the number of reacquired shares from the original shares issued:

60,000 original shares issued - 5,000 reacquired shares = 55,000 outstanding shares. Thus, the correct answer is D) 55,000.

The Charter of a Corporation Provides for the Issuance of 100,000