Asked by Erica Doherty on May 03, 2024
Verified
The maximum number of shares a company can issue to shareholders
A) Authorized shares
B) Issued shares
C) Outstanding shares
D) Par value
E) Common stock
F) Preferred stock
G) Paid-In Capital in Excess of Par
H) Transfer agent
Authorized Shares
The upper limit of shares a corporation can legally distribute, as outlined in its articles of incorporation.
Shareholders
Individuals or entities that legally own one or more shares of stock in a joint-stock company or corporation.
Company
A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.
- Identify and match various stockholder equity terms to their definitions.
Verified Answer
JB
joanna bontigaoMay 07, 2024
Final Answer :
A
Explanation :
Authorized shares refers to the maximum number of shares a company can issue to shareholders.
Answer: B
Issued shares refers to the number of shares that the company has actually issued to investors.
Answer: C
Outstanding shares refers to the number of shares that are currently held by investors and are available for trading on the open market.
Answer: D
Par value is the nominal value of a share of stock as specified in the company's corporate charter.
Answer: E
Common stock represents ownership in a company and typically carries voting rights.
Answer: F
Preferred stock represents ownership in a company but typically does not carry voting rights. Instead, it usually has a fixed dividend payment.
Answer: G
Paid-In Capital in Excess of Par refers to the amount of money investors have paid over and above the par value of the stock.
Answer: H
A transfer agent is a third-party company that handles the issuance and transfer of stocks, often maintaining records of shareholders for the issuing company.
Answer: B
Issued shares refers to the number of shares that the company has actually issued to investors.
Answer: C
Outstanding shares refers to the number of shares that are currently held by investors and are available for trading on the open market.
Answer: D
Par value is the nominal value of a share of stock as specified in the company's corporate charter.
Answer: E
Common stock represents ownership in a company and typically carries voting rights.
Answer: F
Preferred stock represents ownership in a company but typically does not carry voting rights. Instead, it usually has a fixed dividend payment.
Answer: G
Paid-In Capital in Excess of Par refers to the amount of money investors have paid over and above the par value of the stock.
Answer: H
A transfer agent is a third-party company that handles the issuance and transfer of stocks, often maintaining records of shareholders for the issuing company.
Learning Objectives
- Identify and match various stockholder equity terms to their definitions.