The maximum number of shares that a firm can issue is the number of:
A)issued shares.
B)authorized shares.
C)outstanding shares.
D)permissible shares.

Question

Quizplus · Accepted Answer

The maximum number of shares that a firm can issue is determined by the number of authorized shares, which is the total number of shares that a company is legally allowed to issue. The issued shares are the shares that have already been sold or allotted to investors, while outstanding shares are the shares that are currently held by investors. Permissible shares is not a commonly used term in finance, and it is not relevant to determining the maximum number of shares a firm can issue.

The Maximum Number of Shares That a Firm Can Issue