Issued shares
Encyclopedia
Issued shares is a term of law
and finance
for the quantity of shares of a corporation
, which have been sold or awarded and are subsequently held by the shareholders.
The number of issued shares usually a subset of the total authorized shares
, which the board of directors
and/or shareholders have agreed to distribute under certain circumstances.
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
and finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
for the quantity of shares of a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
, which have been sold or awarded and are subsequently held by the shareholders.
The number of issued shares usually a subset of the total authorized shares
Shares authorized
Shares authorized is the maximum number of shares that a company can issue. This number is specified in the company's articles of association but can be changed by shareholders' approval...
, which the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
and/or shareholders have agreed to distribute under certain circumstances.
Basic formulae
- Shares authorizedShares authorizedShares authorized is the maximum number of shares that a company can issue. This number is specified in the company's articles of association but can be changed by shareholders' approval...
= Shares issued + Shares unissued - Shares issued = Shares outstandingShares outstandingShares outstanding are common shares that have been authorized, issued, and purchased by investors. They have voting rights and represent ownership in the corporation by the person or institution that holds the shares. They should be distinguished from treasury shares, which is common stock held by...
+ Treasury stockTreasury stockA treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ....