Unissued Stock

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.

BREAKING DOWN '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.

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