The number of authorized shares of common stock is always greater than or equal to the number of outstanding shares of common stock.

Question

Quizplus · Accepted Answer

This is because authorized shares refer to the maximum number of shares that a company is allowed to issue, while outstanding shares refer to the shares that have already been issued and are currently held by shareholders. Therefore, the number of authorized shares should always be equal to or greater than the number of outstanding shares.

The Number of Authorized Shares of Common Stock Is Always