Question

Corporation is authorized to issue 50,000 shares of stock. On April 1st they issued 15,000 shares. June 8th they issued 18,000 shares. On October 28th, the corporation reacquires 3,000 shares. How many shares are outstanding on December 31st?

Answer 1

Outstanding shares= 30,000

Step-by-step explanation:

Market capitalisation is a measure of the outstanding shares that a company has outstanding (issued). A buyback from the company results in reduction in market capitalisation. However buybacks also tend to increase the price of shares.

So as at December 31 outstanding shares= Total issued shares - Buyback

Outstanding shares= (15,000+ 18,000) - 3,000

Outstanding shares= 30,000