Which of the following statements is true with regard to equity capital?

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Which of the following statements is true with regard to equity capital?

A) The number of shares actually in the hands of stockholders are called outstanding shares
B) It is unusual for corporations to have more than one class of stock outstanding at any point in time
C) Preferred stock represents the shares of stock that have been permanently retired
D) Issued shares represent the maximum number of shares that can be issued by a corporation

Answer: A

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