Issued shares

Issued shares is a term of law and finance for the quantity of shares of a corporation, which have been allocated (allotted) and are subsequently held by shareholders. The act of creating new issued shares is called issuance, allocation or allotment. Allotment in simplicity is transfer of ownership of shares from company to a subscriber. In essence it is after allotment that a subscriber acquire the custody of been a shareholder of the company of application. the monies allotted are transfer to bank. share can be issued on the following bases: Shares issued at par: This is where shares are issued at the same cost of nominal value, i.e share cost equal to nominal value. Shares issued at premium': shares issued at high cost of nominal value, i.e company may have a nominal value of $10 but decide to issue there share at $15. The excess of issued cost over the nominal value is known as share premium, which should be treated in its relative account. Shares Issued at a discount: shares are issued at a lower cost than nominal value, in essence the does not have in the real world.

Treatment of account on issued shares

On Application of shares by subscriber; Debit application account (nominal value) credit shares capital account On allotment of shares Debit shares allotment account (nominal value) Credit shares capital account

The number of issued shares is usually a subset of the total authorized shares, which the board of directors and/or shareholders have agreed to allocate. The issued shares are the sum of outstanding shares and treasury shares.

Basic formulae

• Shares authorized = Shares issued + Shares unissued
• Shares issued = Shares outstanding + Treasury stock

See also

• Share capital

External links

• Issued shares
• Detailed break down from Companies House