36) Explain the difference between authorized, issued, treasury and outstanding stock.
37) What is the difference between the par value of a stock and its market value?
38) Explain the difference between contributed capital, capital stock, and additional paid-in capital.
39) Discuss the ownership rights available to common shareholders.
40) Verst Corporation’s state charter allows the corporation to issue 500,000 shares of $1 par value common stock. It has sold 305,000 shares of common stock to the public and it currently holds 5,000 shares of treasury stock.
1. How many shares are authorized?
2. How many shares are issued?
3. How many shares are outstanding?
41) G-Hi Corporation’s state charter authorizes the corporation to issue 1,000,000 shares of $1 par value common stock. It has sold 600,000 shares of common stock to the public. At the end of the year it held 20,000 shares of treasury stock.
1. How many shares are authorized?
2. How many shares are issued?
3. How many shares are outstanding?