Jerrod Platt, your uncle, is an inventor who has decided to incorporate. Uncle Jerrod knows that you are an accounting major at U.N.O. In a recent letter to you, he ends with the question, "I'm filling out a state incorporation application. Can you tell me the difference in the following terms?
(1) Authorized stock,
(2) Issued stock,
(3) Outstanding stock,
(4) Preferred stock?

Instructions
In a brief note, differentiate for Uncle Jerrod among the four different stock terms. Write the letter to be friendly, yet professional.