Canadian Securities Course (CSC) Practice Exam

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Practice for the Canadian Securities Course (CSC) exam with our quiz. Test your knowledge with multiple-choice questions. Be prepared for the real exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What do authorized shares represent for a corporation according to the corporate charter?

Shares that have been bought back by the company
Shares outstanding in the market at a given time
The maximum number of shares a corporation can issue
Shares purchased by authorized dealers

The correct answer is: The maximum number of shares a corporation can issue

Authorized shares represent the maximum number of shares that a corporation is allowed to issue according to its corporate charter. Option A is incorrect because shares bought back by the company would be considered treasury stock, not authorized shares. Option B is incorrect because it refers to the current number of shares in the market, not the maximum allowed. Option D is incorrect because it refers to the purchase of shares by authorized dealers, not the maximum number of shares the corporation can issue.