The corporate charter of Gage Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first 2 years of operation, Gage sold 70,000 shares to shareholders and reacquired 4,000 of these shares. After these transactions, how many shares are authorized, issued, and outstanding?

Question

Harmony Weeks

Business

27 November, 05:47

The corporate charter of Gage Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first 2 years of operation, Gage sold 70,000 shares to shareholders and reacquired 4,000 of these shares. After these transactions, how many shares are authorized, issued, and outstanding?

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Answers (1)

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Summer Stephens · Answer 1

Authorized : 100,000

Issued : 66,000

Outstanding: 34,000

Explanation:

Authorized shares refers to the number of shares approved by the board for issue. A company is not permitted to issue shares above it's authorized shares.

Issued shares refers to shares offered to shareholders.

Outstanding shares are shares not yet subscribed by shareholders.