The number of outstanding shares should exceed the number of authorized shares.

Name: The number of outstanding shares should exceed the number of authorized shares.
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Quizplus · Accepted Answer

The number of authorized shares represents the maximum number of shares that a company is allowed to issue, whereas outstanding shares refer to the number of shares that are currently held by investors. Therefore, it is possible for a company to have more authorized shares than outstanding shares, but not the other way around.

The Number of Outstanding Shares Should Exceed the Number of Authorized