Which of the following statements regarding issued and outstanding stock is true?
A)Outstanding stock includes all stock issued by a corporation.
B)Issued stock equals the sum of outstanding stock and treasury stock.
C)Issued stock is equal to authorized stock.
D)Outstanding stock includes stock in the hands of investors,as well as treasury stock in the hands of the corporation.

Question

Quizplus · Accepted Answer

Issued stock is the total number of shares a company has ever issued, while outstanding stock is the number of shares currently held by investors. Treasury stock is the portion of issued stock that the company has repurchased and not retired, so issued stock equals outstanding stock plus treasury stock.

Which of the Following Statements Regarding Issued and Outstanding Stock