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 authorized shares after these transactions are accounted for is:
A)12 million shares.
B)20 million shares.
C)9 million shares.
D)17 million shares.

Question

Quizplus · Accepted Answer

Authorized shares are the maximum number of shares of capital stock of a corporation that can be issued,as specified in the charter.This corporation has 20 million shares authorized.

A Corporate Charter Specifies That the Company May Sell Up