What's the difference between Shares Authorized, Issued and Outstanding?
This video details the difference between Shares Authorized, Shares Issued and Shares Outstanding. Watch this Video Next ➡️ • Stockholders Equity - Detailed Review and ...
📌 Supporting Details
✅ What are shares authorized?
Shares authorized refers to the maximum number of shares that a corporation is legally permitted to issue as specified in its articles of incorporation. This is a limit set during the formation of the company and can be increased or decreased through shareholder approval.
✅ What are shares issued?
Shares issued refers to the total number of shares that a company has actually sold and delivered to shareholders. These shares represent ownership in the company and are part of the total number of authorized shares, which is the maximum number of shares the company is allowed to issue. This can include shares bought back by the company known as Treasury Stock.
✅ What are shares outstanding?
Shares outstanding refers to the total number of shares of a company that are currently owned by all its shareholders.
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Chapters
0:00 Introduction
0:43 Shares authorized
2:22 Shares issued
7:30 Shares outstanding