Which of the following statements is true with regard to equity capital?

Question

Quizplus · Accepted Answer

Outstanding shares are the number of shares issued by a corporation that are actually in the hands of stockholders.

B) is incorrect as it is not unusual for corporations to have multiple classes of stock.
C) is incorrect as preferred stock represents a separate class of stock with specific rights and privileges.
D) is incorrect as outstanding shares represent the number of shares already issued by a corporation, not the maximum number that can be issued.

Which of the Following Statements Is True with Regard to Equity