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General Accounting Discussions: Cash dividend on stock (Authorized, Issued, Outstanding..AARGH!!)

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    • CommentAuthorAllocator1
    • CommentTimeSep 17th 2009
     
    I'm drawing a blank. Authorized, issued, and outstanding are confusing me. Examle, if 200,000 shares are authorized, 100,000 issued, and 150,000 outstanding, who gets a dividend paid out? In other words, how many shares are actually owned. Is it 50,000, since you subtract issued from outstanding to determine how many shares are in the hands of investors who get a dividend.
    Thankful People: Hank Elder
    • CommentAuthorCounter
    • CommentTimeNov 6th 2009
     
    I don't see how a corporation can have more shares outstanding than shares issued. I would have expected to see 200k shares authorized, 150k shares issued, and 100k shares outstanding. The outstanding shares are the shares in the hands of the investors. The difference between the shares issued and the shares outstanding would be 50k shares of Treasury Stock (shares repurchased by the corporation). Dividends are declared and paid on the 100k shares that are outstanding.

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