Issued shares vs. outstanding shares have several differences. An issued share is simply a share that has been given to an investor, whereas outstanding shares refer to
all
the shares that have been issued by a company.
Authorized shares are the maximum number of shares a company is allowed to issue to investors, as laid out in its articles of incorporation. Outstanding shares are
the actual shares issued or sold to
investors from the available number of authorized shares.
“Issued and outstanding” means
the number of shares actually issued by the company to shareholders
. For example, your company may have “authorized” 10 million shares to be issued, but may have only “issued” 6 million of them, meaning there are another 4 million shares that are authorized to be issued at a later time.
Shares outstanding refer
to a company’s stock currently held by all its shareholders
, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. Outstanding shares are shown on a company’s balance sheet under the heading “Capital Stock.”
Issued shares give the privilege of ownership
, while outstanding shares do not give ownership to anyone. Issued shares can be easily bought and sell from the stock exchange, while outstanding shares are not tradable. Treasury stock forms the part of issued shares, while outstanding excludes the same.
Shares outstanding is just the amount of all the company’s stock that’s in the hands of its stockholders. By itself,
it is not intrinsically good or bad
. … Shares outstanding are useful for calculating many widely used measures of a company, like its market capitalization and earnings per share.
One is that knowing the shares outstanding can help investors find the market capitalization (total value) of a business. … The number of shares outstanding is also
significant
to know because a firm could choose to issue more stock if it has authorized more shares than it currently has outstanding.
- Avoid the liabilities of debt. The alternative to raising capital with stock is to go into debt. …
- Liquidity. …
- Attract investors. …
- Diluted ownership. …
- Less control. …
- Legal risks.
If you know the market cap of a company and you know its share price, then figuring out the number of outstanding shares is easy. Just
take the market capitalization figure and divide it by the share price
. The result is the number of shares on which the market capitalization number was based.
Issue of Shares is the process in which companies allot new shares to shareholders. … Issue of
Prospectus, Receiving Applications, Allotment of Shares
are three basic steps of the procedure of issuing the shares. The process of creating new shares is known as Allocation or allotment.
A company’s float cannot be greater than its outstanding shares. Floating stock can
increase if the company chooses to issue more shares of stock
, but the number of outstanding shares would also increase in that case.
So, the answer is that
available stock CAN run out
. In lightly traded companies, you might not find anyone who wants to sell. I’ve had that happen on the other end, where I put in a market sell order and could not sell all of my shares.
| Avg Vol (3 month) 3 80.02M | Shares Outstanding 5 16.69B | Implied Shares Outstanding 6 N/A | Float 16.51B | % Held by Insiders 1 0.07% |
|---|
The number of outstanding shares, however,
can never be more than the number of issued shares
. After a company has bought back investor’s stocks, the shares that have been purchased will not be considered outstanding shares, although they are still issued shares.
Every publicly traded company issues shares. …
Shares outstanding
refers to the total number of shares a company has issued, while the public float — also referred to as floating shares or “the float” — are shares that are publicly owned, unrestricted and available on the open market.
Subscribed shares are
shares that investors have promised to buy
. These shares are usually subscribed as part of an initial public offering (IPO). … Subscribed share capital refers to the monetary value of all the shares for which investors have expressed an interest.
