Common Stock

Question 1

Authorized Stock

Answer 1

Total number of shares that are available for a corporation to issue

Question 2

Issued Stock

Answer 2

Number of shares of authorized stock a corporation has actually issued

Question 3

Outstanding Shares

Answer 3

Number of issued shares that are owned by public

Question 4

Treasury Stock

Answer 4

Issued shares that have been repurchased by the corporation

Question 5

Duties of registrar

Answer 5

Maintains record of all shareholder names; makes sure more shares are not issued than authorized

Question 6

Duties of transfer agent

Answer 6

Cancels existing shares and issues new ones as stocks are traded

Question 7

What items require a shareholder vote?

Answer 7

stock split
reverse stock split
issue convertible bonds or preferred stock
issue stock options to officers

Question 8

What items do not require a shareholder vote?

Answer 8

dividends
repurchase shares
rights distribution

Question 9

Statutory Voting

Answer 9

If a shareholder has 100 shares then:

100 votes maximum are allowed for each position

Question 10

Cumulative Voting

Answer 10

If a shareholder has 100 shares and there are 6 positions:

600 votes total that can be cast in any manner

Question 11

Formula for Value of Right

Answer 11

N (number of rights to buy 1 share) + 1