Earl Kent, your uncle, is an inventor who has decided to incorporate. Uncle Earl knows that you are an accounting major at U.N.O. In a recent letter to you, he ends with the question, “I’m fi lling out a state incorporation application. Can you tell me the difference among the following terms: (1) authorized stock, (2) issued stock, (3) outstanding stock, and (4) preferred stock?” LO6 Instructions In a brief note, differentiate for Uncle Earl the four different stock terms. Write the letter to be friendly, yet professional.

ETHICS CASES