Question

Your friend, Jonathon Fain, is an engineering major with an entrepreneurial spirit. He wants to start his own corporation and needs your accounting expertise. He has no idea what the following definitions mean: Select the most appropriate term from the dropdown to match the following definitions. Terms Definitions 1. The total number of shares available to sell, stated in the company's articles of incorporation. 2. The number of shares that have been sold to investors 3. The number of shares held by investors; excludes treasury shares. 4 Stock with preference over common stock in the payment of dividends and the distribution of assets 5. The company's own stock that it has repurchased.

Answer 1

1	The total number of shares available to sell,stated in the company's articles of incorporation	Authorized stock
2	The number of shares that have been sold to investors.	Issued stock
3	The number of shares held by investors,excluding Treasury shares	Outstanding stock
4	Stock with Preference over common stock in the payment of dividends and the distribution of assets	Preferred stock
5	The company's own stock that is has repurchased	Treasury stock