The maximum number of shares a firm can issue is known as:
A)number of shares issued but not outstanding.
B)number of shares issued and outstanding.
C)number of authorized shares.
D)number of treasury shares.

Question

Quizplus · Accepted Answer

The maximum number of shares a firm can issue is known as the number of authorized shares. This represents the total number of shares that the company is authorized to issue according to its charter or articles of incorporation. This number can be increased or decreased with shareholder approval. However, not all authorized shares will be issued or outstanding at any given time.

The Maximum Number of Shares a Firm Can Issue Is