Question

multiple choice question

stockit, inc. issued 100,000 shares of the 1,000,000 shares authorized. stockit has repurchased 10,000 of its shares. the number of shares authorized represents the _______. (check all that apply.)

• maximum number of shares stockit is allowed to issue
• number of shares issued
• number of shares that have been repurchased

Explanation:

Define authorized shares

Authorized shares represent the maximum number of shares of stock that a corporation is legally permitted to issue under its corporate charter.

Evaluate the options

• "maximum number of shares Stockit is allowed to issue": This matches the definition of authorized shares.
• "number of shares issued": This refers to issued shares (100,000 shares in this scenario).
• "number of shares that have been repurchased": This refers to treasury shares (10,000 shares in this scenario).

Select the correct choice

The first option is the only correct description of authorized shares.

Answer:

• maximum number of shares Stockit is allowed to issue (Correct answer)
• number of shares issued
• number of shares that have been repurchased