Share capital is the total of all funds raised by a company through the sale of equity to investors. Issued share capital is the value of shares actually held by investors.

If it does occur, a company has breached any agreement with those investors, employees or other parties that have been “issued” the excess shares. In addition to any conflict with these potential recipients, such over-issuances are often complex (but not impossible) to correct under state law.

They are “authorized” because they fall within the maximum number of shares a company can sell ing to its corporate charter. They are “issued” because they have been sold. They are “outstanding” because they have been sold to the public (not to the owners or managers of the company).

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.

Authorised Share Capital is the shares of the company in total. It is the maximum number of shares that a company may issue ing to its Memorandum and Articles of Association. These shares may have been issued or not. The Issued Share Capital is the Share Capital which is owned by the Shareholders.

The authorised share capital (or nominal share capital) can best be described as the maximum amount of share capital that the company is authorised by its Constitution to issue (allocate) to shareholders. Part of the authorised share capital can (and usually does) remain unissued.

More info

Outstanding shares are shares of stock that have been issued. "Authorized shares" refers to the number of shares the corporation is allowed to issue under its certificate or articles of incorporation.Advisor Class and Class Z shares are available only to certain, eligible investors. Refer to "Qualified Investors" in the prospectus for more information. Issued shares are drawn from the total pool of authorized shares and can never exceed the number of authorized shares.

Shares Authorized Vs Issued In Franklin

Description

Related forms

Show more info

Form Rating

Form popularity

FAQ

What is the difference between authorised capital and issued capital?

What is the difference between share capital and issued share capital?

What happens if a company issues more shares than authorized?

What is the difference between authorized and issued shares?

What is the difference between authorized share and issued share?

What is the difference between Authorised and issued share capital?

What does Authorised and issued share capital mean?

More info

Trusted and secure by over 3 million people of the world’s leading companies