Issued Shares Definition
Issued shares refer to the totality of a company’s shares that have been issued or allocated to the company’s shareholders, these number of shares are recorded in the company’s annual report. Issued shares are shares of a company that have been given to shareholders either as a form of compensation or during issuance of shares. Shares held by shareholders which comprises of investors, company insiders, institutional investors and the general public are issued shares. In certain cases, a company can buy back its shares issued to investors and keep as treasury shares. Shares that a company holds in its treasury stock or retired shares are not part of issued shares.
A Little More on What are Issued Shares
The number of shares that a company issues or allocates to its shareholders are recorded as capital stock or owner’s equity in the company’s balance sheet. When calculating market capitalization or when the financial statement of a company is being compiled, issued shares are important. A company’s outstanding shares are also recorded under capital in an annual report and listed when doing quarterly filings with the SEC.
The holdings or portion of the ownership of a company that shareholders maintain can be determined through the number of shares they hold. All issued and authorized shares of a company are used when calculating the ownership of a company. Issued shares are important when evaluating the ownership of a company, the shareholders of a company maintain a share of the company’s ownership. Investors or shareholders who were issued shares through a secondary offering or those that purchased shares when a company starts can claim a portion of the company’s ownership. Using the fully diluted calculation or method, a company’s ownership can be estimated.