Difference Between Authorized Issued & Outstanding Shares

Authorized Shares

The number of shares a corporation has the authorization to issue appears in the company’s articles of incorporation, also known as a certificate of incorporation. Articles of incorporation must be filed with the secretary or department of state to begin the legal existence of a corporation. The articles contain basic information about a corporation such as the legal name and location of the business and the purpose for forming the company. A company cannot issue more shares than the company has the authorization to issue as indicated in the company’s articles of incorporation. Corporations are not required to issue all authorized shares, which allows the company to hold some shares until a later time when capital needs become more pressing.

Issued Shares

A corporation issues shares to investors to raise cash and acquire assets. Corporations issue shares by selling authorized shares to investors, as explained by the Accounting Coach website. This means a corporation can be authorized to issue 50,000 shares, but the company can choose to only issue 5,000 shares. On the other hand, a corporation authorized to issue 50,000 shares may issue all 50,000 shares. Even when a corporation issues all authorized shares, the number of issued shares can never exceed the number of shares the corporation has the authorization to issue.

Outstanding Shares

Outstanding shares indicate the number of shares held by shareholders. The number of outstanding shares can never exceed the number of issued shares or the number of authorized shares. For instance, a corporation that issues 20,000 shares has 20,000 shares outstanding. However, outstanding shares can be less than the number of issued or authorized shares. Let’s assume a company issues 1,000 shares, but buys back 200 shares. In this scenario, the company has 1,000 shares issued and 800 shares outstanding, since 200 shares have been retired or repurchased by the corporation.

Treasury Stock

Treasury stock is when a company repurchases its own shares from the company’s stockholders, as stated by the Cliffs Notes website. When a company purchases treasury stock, it does not exist as an asset to the company and treasury stock does not draw a dividend. A corporation can reissue treasury stock or terminate the existence of the treasury shares. Buying back shares may be beneficial for a corporation’s shareholders, since it decreases the number of outstanding shares. Decreasing the number of outstanding shares in this fashion increases a corporation’s earnings per share, according to the RightLine.net website.

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Future of Education

Today’s education system is antiquated and needs some serious updating.

I support the work Salman Khan  (links to wikipedia.org) is doing at the Khan Academy and I support his efforts and I believe that this is the way of the future. It is not to replace the classroom but to enhance it. It allows the teacher to be more interactive with the students in the classroom.

I like it because it gives someone in my age group the opportunity to use it as a tool to keep on top of subjects like algebra, trigonometry, calculus, and my favorite subject physics. I am looking forward to seeing more videos on more advanced physics and other subjects. One of my worst subjects in school was english I still, to this day can not figure out what a predicate nominative is , etc.

It is our goal here at The Center to support his organization by donating stock in our organization and in the near future a sizable annual financial donation to keep Khan Academy on the track of providing free education to the world. I am challenging other companies such as ours to do the same.

Yes, there is a method to our madness here. Our purpose and is space travel, tourism, exploration and colonization. Part of that mission includes education in space. How are we going to teach the children that are born on a starship? We will need a system like the one Khan Academy has set up and continues to evolve. One that allows students to learn at their own pace and give the teachers time to interact with their students.

Now back to my situation. Because of my age and because I am building several companies that are space oriented I need a fast track to get me up to snuff in the fields of mathematics, physics (my favorite), and the other S.T.E.M. courses. This is the perfect situation for me, it allows me the freedom to refresh my skills in the areas I need for these ventures. You can not build a rocket and put it into space if you don’t have algebra, trigonometry, calculus, and physics and lets not forget geometry.

Eventually education needs to become streamlined for students to complete their entire education by the time they reach 20 years of age. In the process they will hone their skills in the area of creativity. Manual labor will be done by machines and your desktop (actually it will morph into something else) will become a supercomputer in order for us to do all the calculations we need and other areas of knowledge. Instead of taking the hours we use now to look up and study material  on a specific subject it will take seconds to have that material readily  at your fingertips.