The number of shares of issued stock equals
A)unissued shares minus authorized shares.
B)outstanding shares plus treasury shares.
C)subscribed shares plus outstanding shares.
D)authorized shares minus treasury shares.

Question

Quizplus · Accepted Answer

- Authorized shares refer to the maximum number of shares a corporation can issue, as stated in its articles of incorporation.
- Unissued shares refer to authorized shares that the corporation has not yet issued or sold.
- Subscribed shares are shares that have been sold but not yet issued to the shareholder.
- Outstanding shares are those that have been issued to shareholders and are currently held by them.
- Treasury shares are outstanding shares that the corporation has reacquired and are being held by the corporation itself.
 
Therefore, the only option that correctly summarizes the relationship between outstanding shares and treasury shares is B, which says that the number of shares of issued stock equals outstanding shares plus treasury shares.

The Number of Shares of Issued Stock Equals