If a corporation is authorized to issue 1,000 $50 ordinary shares, it is said to have $50,000 of shares outstanding.

Question

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The corporation is authorized to issue shares up to a certain amount, but shares outstanding refers to the number of shares that have actually been issued and are currently held by shareholders. The statement does not specify that all authorized shares have been issued.

If a Corporation Is Authorized to Issue 1,000 $50 Ordinary