What does the term issued shares mean?
The term shares issued refers to the total number of shares issued by a company. This includes all shares held by the shareholders as well as the shares held by the company itself. The number of shares issued can change, e.g. due to a share split or a reverse stock split.
Difference between issued and outstanding shares
While issued shares describe the total number of all issued shares, outstanding shares refer to the number of all shares held by shareholders excluding the company’s own shares. In other words:
Issued shares – treasury shares of the company = outstanding shares
Outstanding and issued shares can therefore be identical at most. Outstanding shares are often used by investors when calculating key figures in order to evaluate or analyze a stock corporation.
Change in the number of shares issued
The number of shares issued is not fixed. If a company requires additional capital, further shares can be issued, thereby increasing the number of shares. Increases are also possible through share splits. This involves increasing the number of shares by dividing existing shares. It is also possible to combine shares (reverse split), which in turn reduces the number of shares issued.