The number of shares of stock a corporation may issue when a corporation is formed is called ________ shares.
A)authorized
B)issued
C)outstanding
D)treasury

Question

Quizplus · Accepted Answer

Authorized shares refer to the maximum number of shares a corporation can issue, which is determined when the corporation is formed. Issued shares are the number of shares that have actually been issued to shareholders, while outstanding shares are the shares that are currently held by shareholders (excluding treasury shares). Treasury shares are shares that have been repurchased by the corporation and are held by the corporation as an asset.

The Number of Shares of Stock a Corporation May Issue