The total amount of stock that a corporation's charter allows it to issue is referred to as:
A)Issued stock
B)Outstanding stock
C)Common stock
D)Preferred stock
E)Authorized stock

Question

Quizplus · Accepted Answer

The total amount of stock a corporation is authorized to issue is referred to as authorized stock. Issued stock refers to the shares that have been sold to investors, outstanding stock refers to shares that are currently held by investors, common stock refers to the most basic form of ownership in a corporation, and preferred stock refers to a type of ownership that typically has priority over common stock in terms of dividends and other benefits.

The Total Amount of Stock That a Corporation's Charter Allows