key term - Issued shares

Definition

Issued shares are the total number of a company's shares that have been sold and are held by shareholders. These shares include both outstanding shares and treasury shares.

5 Must Know Facts For Your Next Test

1. Issued shares represent ownership in the company and can be common or preferred stock.
2. The number of issued shares cannot exceed the number of authorized shares specified in the company's charter.
3. Treasury shares are those that were issued and later reacquired by the company.
4. Issued shares impact the calculation of earnings per share (EPS) as they determine the denominator in this ratio.
5. The process of issuing shares involves steps like board approval, regulatory compliance, and setting an issue price.

Review Questions

Related terms

Authorized Shares: The maximum number of shares that a corporation is legally permitted to issue, as specified in its charter.

Outstanding Shares:

The portion of issued shares that are currently held by investors, excluding treasury stock.

Treasury Shares: Previously issued but subsequently repurchased by the corporation; these do not count towards outstanding shares but are included in issued shares.