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 current number of outstanding shares after these transactions have been accounted for is:
A)8 million shares.
B)20 million shares.
C)10 million shares.
D)9 million shares.

Question

Quizplus · Accepted Answer

Outstanding shares are issued shares that are currently held by stockholders and not the corporation itself.This corporation has 9 million shares outstanding (or 12 million shares issued − 3 million shares of treasury stock).

A Corporate Charter Specifies That the Company May Sell Up