The Total Amount of Stock That a Corporation's Charter Allows

question 196

Multiple Choice

The total amount of stock that a corporation's charter allows it to issue is referred to as:

• A)Issued stock
• B)Outstanding stock
• C)Common stock
• D)Preferred stock
• E)Authorized Stock

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Definitions:

Primary Market

The financial market where new securities are sold to initial buyers directly by the issuer, often through underwriting.

Securities

Instruments of finance that denote a share in a company available on the public stock exchange, an obligation owed to investors by governments or businesses (bonds), or the assignment of ownership via options.

Investment Banks

Financial institutions that provide various services including underwriting, acting as intermediaries in mergers and acquisitions, and facilitating securities trading.

Direct Transfer

A method of moving funds or assets from one account or entity directly to another without any intermediaries.