Which of the following usually represents the largest number of common shares?
A)Restricted shares.
B)Issued shares.
C)Treasury shares.
D)Authorized shares.

Question

Quizplus · Accepted Answer

Authorized shares represent the maximum number of shares that a company can issue. It is common for a company to authorize a large number of shares, but only issue a portion of them, so the authorized shares usually represent the largest number of common shares. Restricted shares are issued but have certain restrictions, such as not being tradable for a certain period. Issued shares are a portion of the authorized shares that have been sold to investors. Treasury shares are shares that the company has bought back from investors and are not considered outstanding.

Which of the Following Usually Represents the Largest Number of Common