“Issued and outstanding” means the number of shares actually issued by the company to shareholders. For example, your company may have “authorized” 10 million shares to be issued, but may have only “issued” 6 million of them, meaning there are another 4 million shares that are authorized to be issued at a later time.
Issued shares are the total shares issued by the Company. Whereas outstanding shares are the shares with the shareholders, i.e., it does not include the shares repurchased by the Company.
Shares outstanding refer to a company’s stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. Outstanding shares are shown on a company’s balance sheet under the heading “Capital Stock.”
Issued shares refer to a company’s total stock of equity shares held by investors, insiders, and held in reserve for employee compensation. Unlike outstanding shares, issued shares factor in treasury shares—stock a company buys back from shareholders.
Shares that are issued or sold to investors from the available number of authorized shares are known as outstanding shares. … A secondary stock market offering can increase the number of outstanding shares, as can payment of employee stock options.
Knowing the number of shares a firm has outstanding is significant for a couple of reasons. One is that knowing the shares outstanding can help investors find the market capitalization (total value) of a business. Multiply the share price by the number of shares outstanding to find a company’s market capitalization.
Outstanding shares are the total number of common stocks owned by investors. … They also do not include preferred shares, which are stocks that do not carry shareholder voting rights, but do give their owners some ownership rights and pay a fixed dividend.
However, a company commonly has the right to increase the amount of stock it’s authorized to issue through approval by its board of directors. Also, along with the right to issue more shares for sale, a company has the right to buy back existing shares from stockholders.
Shares are beholden to the same economic laws as anything else that can be bought or sold: price is determined by supply and demand. Thus, the value of each share is inversely related to the number of shares outstanding, with all other things being equal.
If you know the number of treasury stock, or shares reclaimed by the company but not retired, and the number of shares outstanding, you can calculate shares issued: shares issued = shares outstanding + treasury stock.
Day traders will often buy and sell shares of the same company multiple times during the same trading session, thus increasing the trading volume so that it exceeds the number of outstanding shares. Short-term traders provide the market liquidity required to trade more shares than the actual shares outstanding.