The maximum number of shares that can be issued by a firm is called:
A)Treasury stock.
B)outstanding shares.
C)authorized shares.
D)none of the options.

Question

Quizplus · Accepted Answer

The maximum number of shares that can be issued by a firm is called authorized shares. These shares are the maximum number of shares that a company can issue according to their articles of incorporation. Treasury stock refers to the shares of a company owned by the company itself. Outstanding shares are those shares that have been issued and are currently owned by investors. None of these options would be the correct answer for the given question except for authorized shares.

The Maximum Number of Shares That Can Be Issued by a Firm