ISSUED CAPITAL STOCK Meaning and
Definition
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Issued capital stock, also known as issued share capital or issued stock, refers to the total number of shares that a company has authorized and distributed to its shareholders or investors. It represents the ownership interest or equity that shareholders hold in the company.
When a company decides to raise capital, it may issue shares of stock to investors in exchange for funds. These shares represent ownership stakes or portions of the company's equity. The total number of shares issued by the company is referred to as the issued capital stock.
Issued capital stock is an important indicator of a company's financial health and value. It determines the ownership structure and distribution of voting rights among shareholders. The value of each share is determined by dividing the company's total equity by the number of shares issued.
The issued capital stock is authorized by the company's articles of incorporation. It may consist of different classes of shares, such as common shares and preferred shares, each carrying specific rights and privileges. Any changes or amendments to the issued capital stock, such as stock splits, reverse splits, or issuance of additional shares, require the approval of the company's board of directors and sometimes the shareholders.
Investors and financial analysts closely monitor the changes in a company's issued capital stock as it can have a significant impact on the company's market value, share price, and financial performance.
Common Misspellings for ISSUED CAPITAL STOCK
- ussued capital stock
- jssued capital stock
- kssued capital stock
- ossued capital stock
- 9ssued capital stock
- 8ssued capital stock
- iasued capital stock
- izsued capital stock
- ixsued capital stock
- idsued capital stock
- iesued capital stock
- iwsued capital stock
- isaued capital stock
- iszued capital stock
- isxued capital stock
- isdued capital stock
- iseued capital stock
- iswued capital stock
- issyed capital stock
- isshed capital stock
