What are Authorized and Outstanding Shares

While the most basic definition of stock is ownership there are many types of ownership therefore many types of stocks available.

Authorized shares are the total number of shares that a company is able to issue.   This is determined by the company’s articles of association – the regulations regarding the relationships between shareholders and the company’s directors. Once they have determined the number of Authorized shares they are issued on the stock market.  Once released, the shares are purchased by investors and are considered Outstanding Shares. Outstanding Shares are the common shares of the company that have been issued and purchased by investors.

At Picks That Move, we want to provide investors with some general guidance in penny stocks trading.
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