Which of the Following Statements Is True with Regard to Equity

question 62

Multiple Choice

Which of the following statements is true with regard to equity capital?

• A)The number of shares actually in the hands of stockholders are called outstanding shares.
• B)It is unusual for corporations to have more than one class of stock outstanding at any point in time.
• C)Preferred stock represents the shares of stock that have been permanently retired.
• D)Outstanding shares represent the maximum number of shares that can be issued by a corporation.

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