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by John Smith on May 25th, 2009

John Smith

Question

Help answer this question below.

True or False?
1) The number of authorized shares should always equal or exceed the number of outstanding shares.

2) For accounting purposes, stated value is treated the same way as par value.

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Answers. Showing one answer.

  • by CC has lost it on May 26th, 2009

    CC has lost it

    1 False. The number of authorized shares is equal to the total number shares that COULD be distributed. The number of outstanding shares is the number of shares that HAVE been distributed.

    2 True. Stated value and Par value are the same. That is the face value of the stock. It's NOT the market value.

    Comments

    • Andy, you are correct. I twisted the question and number 1 should be true.

      CC has lost it

      by CC has lost it on May 29th, 2009

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