Maximum Number of Shares That Can Be Issued by a Firm

question 50

Multiple Choice

Maximum number of shares that can be issued by a firm is called

• A) Treasury stock
• B) Outstanding shares
• C) Authorized shares
• D) None of the above

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Definitions:

Inflation Risk

The hazard that the value of assets or income will be eroded as inflation shrinks the value of a country's currency.

Business-Specific Risk

The risk associated with the particular circumstances of a specific company, which can affect its earnings and thus its stock price.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial assets, sectors, or industries.

Management Risk

The potential for losses due to the decisions and actions of an organization's management team.