Define: Outstanding Capital Stock

– Outstanding capital stock refers to the total number of shares of stock that have been issued by a company and are currently held by shareholders.

– Authorized capital stock is the maximum number of shares that a company is legally allowed to issue, while outstanding capital stock is the actual number of shares that have been issued and are held by shareholders.

– No, a company cannot legally issue more shares of stock than its authorized capital stock without first amending its articles of incorporation.

– Shareholders of outstanding capital stock typically have the right to vote on company matters, receive dividends, and participate in the company’s profits through ownership of the stock.

– Outstanding capital stock is calculated by adding up the total number of shares of stock that have been issued and are currently held by shareholders.

– Yes, outstanding capital stock can be bought and sold on the open market through stock exchanges or through private transactions.

– In the event of a merger or acquisition, the outstanding capital stock of the acquired company may be converted into shares of the acquiring company or cash, depending on the terms of the deal.

– Yes, a company can buy back its outstanding capital stock through a process known as a stock buyback or share repurchase.

– The tax implications of owning outstanding capital stock can vary depending on factors such as the type of stock (common or preferred), the holding period, and any dividends received.

– Outstanding capital stock is reflected on a company’s balance sheet as part of its equity, and any changes in the number of outstanding shares can impact the company’s earnings per share and other financial metrics.