Authorized stock is the number of shares that have been sold to investors.

Question

Quizplus · Accepted Answer

The first sentence is incorrect in stating that authorized stock is the number of shares that have been sold to investors. The second sentence correctly defines authorized stock as the total number of shares available to sell in the company's articles of incorporation. The third sentence correctly defines issued stock as the number of shares that have been sold to investors.

Authorized Stock Is the Number of Shares That Have Been