Issued, Outstanding, and Fully Diluted Shares

The video tutorial explains the concepts of authorized, issued, and outstanding shares in a corporation. It covers how shares are issued to investors, the changes that can occur in issued shares, and the concept of treasury shares. The tutorial also discusses the idea of fully diluted shares, which includes stock options and conversion rights, and how these affect the total number of outstanding shares.

What are authorized shares in a corporation?

• Shares that are identified in the articles of incorporation

• Shares that have been issued to investors

• Shares that are reserved for future issuance

• Shares that are reacquired by the corporation

What is the term for shares that have been issued and are still held by shareholders?

• Treasury shares

• Authorized shares

• Outstanding shares

• Issued shares

Which of the following can change the number of issued shares in a corporation?

• Stock splits

• All of the above

• Amending the articles of incorporation

• Issuing new classes of shares

What does the term 'fully diluted' refer to in the context of shares?

• The number of shares that are currently outstanding

• The total number of shares after all options and conversion rights are exercised

• The number of shares held in treasury

• The number of shares that are authorized but not yet issued

How can a company increase its total share base for calculation purposes?

• By reducing the number of outstanding shares

• By issuing more authorized shares

• By executing all options and conversion rights

• By reacquiring shares as treasury shares