What does authorized, issued, outstanding, treasury and watered stock refers in corporate law parlance?
Authorized stock is the maximum number of shares a corporation can sell.This number is specified initially in the corporation’s articles of incorporation or other charter documents, but it can be changed with a shareholder approval. A corporation usually sets greater numbers than required to provide flexibility to issue more stock in the future when needed. Issued stock is the number of shares the corporation actually sells. Outstanding stock is stock the corporation has authorized, issued, sold and purchased by current shareholders, investors and/or public. It also includes restricted shares owned by the corporation's officers and insiders. Treasury stock refers to the corporation’s buyback...Continue reading