Explaining what each term means

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Exercise: Authorized stock is the number of shares the company is authorized to sell, stated in the company's articles of incorporation.

Issued stock is the number of shares that have been sold to investors.

Outstanding stock is the number of shares held by investors. Issued and outstanding are the same amounts as long as the corporation has not repurchased any of its shares.

Preferred stock is "preferred" over common stock in two ways. Preferred stockholders usually have first rights to a specified amount of dividend and receive preference over common stockholders in the distribution of assets in the event the corporation is dissolved.

Treasury stock is the corporation's own stock that it acquired.

Explaining what each term means and how they are different from each other.

Reference no: EM131880526

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