A corporation has authorized 1,000,000 shares, issued 600,000 shares, and repurchased 100,000 shares. How many shares are outstanding, and what does this example illustrate about the relationship between these categories?

500,000 shares are outstanding, illustrating that repurchased shares reduce the number of outstanding shares.

1,000,000 shares are outstanding, illustrating that authorized shares always equal issued shares in practice.

900,000 shares are outstanding, illustrating that authorized shares always equal outstanding shares in practice.

600,000 shares are outstanding, illustrating that issued shares always equal outstanding shares in practice.