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Simple English definitions for legal terms
unissued stock
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A quick definition of unissued stock:
Unissued stock is stock that a company has authorized to sell but has not yet sold to shareholders or other investors. This stock does not receive dividends or have voting rights, and shareholders cannot use it to cast votes in meetings. Unissued stock is calculated by subtracting outstanding stock and treasury stock from authorized stock. It is important to note that unissued stock and treasury stock are not the same thing.
A more thorough explanation:
Definition: Unissued stock refers to the shares of a company that have been authorized for use in the company's charter but have not been sold or issued to shareholders or other investors in the market. This type of stock does not receive dividend payments, does not have voting rights, and does not accumulate.
For example, if a company has 10,000 authorized shares, 5,000 outstanding shares, and 500 treasury shares, the total number of unissued shares would be 4,500. Unissued stock is not represented by stock certificates because it has not been sold.
Unissued stock is different from treasury stock, which refers to shares that have been issued but have been repurchased by the company and are being held in its treasury.
Overall, unissued stock is a type of stock that a company has authorized but has not yet sold or issued to investors. It does not have any voting rights or receive dividend payments until it is sold or issued.