Investopedia

Continue to Site »

Unissued Stock

Filed Under »
Dictionary Says

Definition of 'Unissued Stock'

Stock that a company is authorized to issue but has never been sold to investors. Unissued stock is typically not relevant to current stockholders, except that it presents the possibility of dilution of existing ownership if additional stock is sold in the future. Unissued stock is different from treasury stock, since treasury stock has been sold to investors but has subsequently been bought back by the company.
Investopedia Says

Investopedia explains 'Unissued Stock'

There is typically a large amount of unissued stock in most companies, because corporate charters often allow for the issuance of an extremely large number of stock shares to provide the maximum flexibility for the company, in case further stock sales are needed in the future. Since unissued stock has no economic relevance, it is typically not recorded on a company's balance sheet or other financial reports. The number of unissued stock shares can be calculated by obtaining the total number of shares authorized for issuance and subtracting the total shares outstanding, plus treasury stock shares.

Articles Of Interest

  1.

    Basics Of Federal Bond Issues

    Treasuries are considered the safest investments, but they should still be analyzed when issued.

  2. Brokerage Functions: Underwriting And Agency Roles

    Learning about these various activities can give insight into how securities are issued and traded.

  3. The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.

  4. Will Corporate Debt Drag Your Stock Down?

    Borrowed funds can mean a leg up for companies, or the boot for investors. Find out how to tell the difference.

  5. Understanding Rights Issues

    Not sure what to do if a company invites you to buy more shares at discount? Here are some of your options.

  6. How does an IPO get valued? What are some good methods for analyzing IPOs?

    The price of a financial asset traded on the market is set by the forces of supply and demand. Newly issued stocks are no exception to this rule - they sell for whatever price a person is willing ...

  7. Stock Basics Tutorial

    If you're new to the stock market and want the basics, this is the tutorial for you!

  8. The Path To Becoming A CEO

    Think you have what it takes to be chief executive? Find out what those at the top have in common.

  9. Wall Street’s Glass Ceiling

    It’s tough to boast that there are more female CEOs than ever before when they make up only 4.2% of the total.

  10. Is Lululemon's Chief Product Officer to Blame For Sheer Debacle?

    Lululemon announced April 3 that Chief Product Officer Sheree Waterson was leaving the company as of April 15. Assigning blame might appease the board, but it shouldn't do anything for investors.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center