Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
Shares Authorized Vs Issued In Michigan
State:
Multi-State
Control #:
US-0034-CR
Format:
Word;
Rich Text
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FAQ
What are Outstanding Shares? Outstanding shares are the total number of shares of a company's stock that are currently owned by investors, including institutional investors, insiders, and the general public. These shares are issued by the company and sold to investors, who become partial owners of the company.
At this point, you may wonder what happens when a company has attempted to issue more shares than it has authorized. Make sure this doesn't happen! If it does occur, a company has breached any agreement with those investors, employees or other parties that have been “issued” the excess shares.
Authorized stock is the max amount of shares that a company can issue. Generally, a company will not issue 100% of the authorized stock, so issued stock will be less than the authorized amount. Issued stock can be held by the company, held by employees, or held by the general public.
Authorized shares are the total number of shares a company can legally issue, while issued shares are the number the company has issued to date. The number of authorized and issued shares may be the same or different, in which case there would be more authorized than issued shares.
For example, after a company has bought back investor's stocks, the shares that have been purchased will no longer be considered outstanding shares, although they are still issued shares. You can find a company's outstanding shares count listed under Capital Stock on the company's balance sheet.
More info
A corporation may acquire its own shares and those shares constitute authorized but unissued shares, except as provided in subsection (4). A corporation may issue the number of shares authorized in its articles of incorporation.Authorized shares become issued shares when "issued" or distributed to a stockholder. "Authorized shares" refers to the number of shares the corporation is allowed to issue under its certificate or articles of incorporation. Filing Method: Mail, in person or online. Outstanding shares are shares of stock that have been issued. It is also usually listed in the capital accounts section of the balance sheet. The number of authorized shares of stock separated as common shares and preferred shares. Authorized stock shares are the total number of shares that a corporation can issue. I usually advise companies to authorize around 10 to 15 million shares of common stock.