Asked by Isabelle Manaytay on May 04, 2024
Verified
Which of the following usually represents the largest number of common shares?
A) restricted shares.
B) issued shares.
C) treasury shares.
D) authorized shares.
Issued Shares
The number of shares that have been allocated to be sold and are held by shareholders, including both public investors and company officers or insiders.
Treasury Shares
Stocks that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.
- Comprehend the documentation and fiscal reporting of equity transactions.
Verified Answer
JR
Julián RodríguezMay 07, 2024
Final Answer :
D
Explanation :
Authorized shares typically represent the largest number of common shares because they indicate the total number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation. This number is usually larger than the number of shares actually issued to investors (issued shares) and much larger than the subsets of those, such as restricted shares (which are subject to certain conditions) and treasury shares (which are issued shares that have been bought back by the corporation).
Learning Objectives
- Comprehend the documentation and fiscal reporting of equity transactions.