Multiple Choice
Which of the following best describes shares of ownership in the assets and earnings of a business corporation?
12. Stockholders' Equity
Shares Authorized, Issued, and Outstanding
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Which of the following represents the number of shares currently owned by investors?
A
Outstanding shares
B
Issued shares
C
Treasury shares
D
Authorized shares
Verified step by step guidance1
Understand the definitions of the terms provided in the options: Outstanding shares, Issued shares, Treasury shares, and Authorized shares.
Outstanding shares refer to the number of shares currently owned by investors, excluding any shares held by the company as treasury stock.
Issued shares represent the total number of shares that have been issued by the company, including both outstanding shares and treasury shares.
Treasury shares are shares that were issued but have been repurchased by the company and are not currently owned by investors.
Authorized shares are the maximum number of shares a company is legally allowed to issue, as specified in its corporate charter.
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