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Shares Authorized, Issued, and Outstanding definitions

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  • Authorized Shares
    Maximum number of shares a corporation can sell, as specified in its charter, regardless of how many have actually been sold.
  • Issued Shares
    Total number of shares that have been sold to investors from the pool of authorized shares.
  • Outstanding Shares
    Shares currently held by investors, excluding any shares repurchased by the corporation as treasury stock.
  • Treasury Stock
    Shares that were previously issued and later repurchased by the corporation, reducing the number of outstanding shares.
  • Common Stock
    Equity account representing ownership in a corporation, often associated with voting rights and dividends.
  • Charter
    Legal document that establishes a corporation and specifies the maximum number of shares it can authorize.
  • Equity Account
    Section of a corporation’s balance sheet representing ownership interests, including common stock.
  • Investors
    Individuals or entities that purchase shares of a corporation, becoming partial owners.
  • Repurchase
    Action by a corporation to buy back its own shares from the public, converting them into treasury stock.
  • Concentric Circles of Common Stock
    Visual aid using nested circles to illustrate the relationship among authorized, issued, and outstanding shares.
  • Public
    General market of individuals or institutions eligible to buy and hold shares of a corporation.
  • Ownership
    Stake in a corporation represented by holding shares, granting rights such as voting and dividends.
  • Maximum
    Highest possible quantity, such as the total number of shares a corporation is permitted to authorize.