Which of the following is TRUE of outstanding shares?

Question

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Outstanding shares refer to the shares of a company that have been issued or sold to investors. Authorized shares are the maximum number of shares that a company is allowed to issue as stated in their corporate charter. Therefore, authorized shares become outstanding shares when they are issued or sold to investors. Option A is incorrect because a firm can issue and sell more shares than the outstanding shares mentioned in the charter if the charter allows for the issuance of additional shares. Option C is incorrect because outstanding shares are not indicated in a company's corporate charter; authorized shares are. Option D is incorrect because outstanding shares are the shares that are currently in the hands of investors, and do not include shares that are repurchased by the firm.

Which of the Following Is TRUE of Outstanding Shares