Types Of Shares: Authorized, Outstanding, Float And Restricted Shares
a company's financial statements may refer to multiple types of stock including authorized, outstanding, float and restrictive shares. the term authorized shares refers to the maximum number of shares a corporation is legally allowed to issue or offer based on its corporate charter. only a vote of the shareholders can change this amount. a company usually would initially issue less than the authorized amount, so that if it needs to raise more funds down the road, it can issue more shares without having to get a shareholder vote. if a company issues more shares, its outstanding shares will increase. the outstanding shares are those that the company has already issued. they comprise float stock that is sold to public investors and restricted stock that is held by company insiders. float shares are the number of shares available for trade in the open market. typically, restricted shares are offered to key employees who can't transfer them until certain conditions have been met. restrictions may be lifted after a certain length of time or after certain corporate milestones have been met. according to its corporate charter, sure grip tire company has authorized 1,000,000 shares of stock. today, the company has sold 600,000 of these shares to the public. these are float shares available to you and me to buy and sell. the business has offered an additional 100,000 in restrictive shares to members of its management team. outstanding shares, therefore, are 700,000. if sure grip needs additional cash, it still has 300,000 shares from the authorized amount that it can sell in a subsequent public offering without altering its corporate charter or getting a vote from shareholders.
- authorized share・・・発行可能株式総数
- down the road・・・将来
- float share・・・浮動株