Will the number of shares of stock issued and the number of shares of stock outstanding always be the same? Why or why not?
What will be an ideal response?
The number of shares of stock issued and the number of shares of stock outstanding will not always be the same. Authorized stock that has been sold to the public is called issued stock. Outstanding stock (or total issued stock minus treasury stock) is stock owned by investors outside the corporation. The number of shares of stock outstanding will be less than the number issued if a corporation has purchased its own stock as treasury stock.
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