The Calculation to Determine the Number of Outstanding Shares of Stock

question 121

Multiple Choice

The calculation to determine the number of outstanding shares of stock is the number of:

• A)treasury stock shares plus number of issued shares.
• B)authorized shares minus number of issued shares.
• C)issued shares minus number of treasury shares.
• D)authorized shares minus treasury shares.

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Definitions:

Effective Interest Rate

The actual interest rate that a borrower pays or earns on a loan or investment, taking into account the effect of compounding.

Compounded Options

A financial derivative instrument that contains an option that itself has a feature making its payoff at least partially dependent on the future level of interest rates.

GICs

A kind of investment in Canada known as Guaranteed Investment Certificates that provide a promised return rate for a specified duration.

Nominal Annual Rates

The stated annual interest rate of a loan or investment, not accounting for compounding within the year.