Is issued stock the same as outstanding stock?
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.
What does it mean when stock is issued and outstanding?
Issued and outstanding refers to the number of shares actually issued by a company to shareholders, and does not include shares that others may have an option to purchase.
Why are shares called outstanding?
Key Takeaways. Shares outstanding refer to a company's stock currently held by all its shareholders. These include share blocks held by institutional investors and restricted shares owned by the company's officers and insiders. A company's number of shares outstanding is not static and may fluctuate wildly over time.
Is it better to have more or less shares outstanding?
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. If the company decides to sell additional authorized shares, it can reduce the value of the existing shares.