Authorized common stock refers to the total number of shares:
A) Outstanding.
B) Issued.
C) Issued and outstanding.
D) That can be issued.

Question

Quizplus · Accepted Answer

Authorized common stock is the total number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation. This number is the maximum potential shares a company can distribute, not necessarily the number currently issued or outstanding.

Authorized Common Stock Refers to the Total Number of Shares