The Number of Shares of Stock That a Corporation Is

question 151

Multiple Choice

The number of shares of stock that a corporation is given the right to sell is called:

• A)issued stock.
• B)authorized stock.
• C)outstanding stock.
• D)capital stock.

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Definitions:

Instrument

A written legal document that officially records a legally enforceable act, process, or contractual obligation, arrangement, or right.

Promissory Note

A legal instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Primary Liability

Primary liability pertains to the direct and immediate obligation to fulfil a financial commitment or compensate for a loss.

Negotiable Instrument

A negotiable instrument is a written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee able to transfer the instrument to another party.