Question

The number of shares of a class of stock that are outstanding is: Multiple Choice the number of shares authorized minus the number of shares issued. the number of shares authorized minus the number of shares held as treasury stock. the number of shares issued minus the number of shares held as treasury stock. the number of shares issued minus the number of shares owned by directors.

Answer 1

Answer:

The number of shares of a class of stock that are outstanding is:

the number of shares issued minus the number of shares held as treasury stock.

Explanation:

A company's outstanding shares include the total shares issued minus the treasury stock shares.  Treasury stock shares are shares that the company has repurchased from their former stockholders.  They can be held for resale, to pay for stock options to employees, or they are retired completely.  The number of outstanding shares is an ingredient used in computing the earnings per share (EPS), an important financial metric for investors.