The issuance of shares of preferred stock to shareholders
A) increases preferred stock outstanding.
B) has no effect on preferred stock outstanding.
C) increases preferred stock authorized.
D) decreases preferred stock authorized.

Question

Quizplus · Accepted Answer

Issuing shares of preferred stock to shareholders means that more preferred stock is being put into circulation or outstanding. This increases the number of outstanding preferred shares.

The Issuance of Shares of Preferred Stock to Shareholders