What is Unissued Stock?

Unissued shares are also called unissued shares. Shares that have been approved by the company's shareholders meeting and have been registered with the securities administration, but have not yet been issued. Unissued shares are reflected on the company's balance sheet along with issued shares and shares outstanding outside the company. Since unissued shares are not actually sold, they have no dividends and no voting rights. But unissued shares are different from treasury stocks because treasury stocks are stocks that are recovered by the company after they have been issued. The reasons for the formation of unissued shares are: (1) The company issued shares in a step-by-step manner in consideration of its business development strategy. In particular, at the beginning of the company's establishment, there were few investors and limited business volume, and the funds raised could be used to maintain operations. Therefore, some stocks could be reissued when the company's reputation was higher and the business volume was greater; The company's credibility is so bad that new shares cannot be issued; (3) Stocks prepared for the company to subscribe for warrants and convertible bonds. ^[1]

Unissued shares

Right!

Unissued shares are also called unissued shares. Shares that have been approved by the company's shareholders meeting and have been registered with the securities administration, but have not yet been issued. Unissued shares are reflected on the company's balance sheet along with issued shares and shares outstanding outside the company. Since unissued shares are not actually sold, they have no dividends and no voting rights. But unissued shares are different from treasury stocks because treasury stocks are stocks that are recovered by the company after they have been issued. The reasons for the formation of unissued shares are: (1) The company issued shares in a step-by-step manner in consideration of its business development strategy. In particular, at the beginning of the company's establishment, there were few investors and limited business volume, and the funds raised could be used to maintain operations. Therefore, some stocks could be re-issued when the company's reputation was higher and the business volume was greater; The company's credibility is so bad that new shares cannot be issued; (3) Stocks prepared for the company to subscribe for warrants and convertible bonds. ^[1]

Chinese name

Unissued shares

Foreign name

Unissued shares

Specifically

Approved issuance of shares

Background

Authorized capital system

Reasons for unissued shares

There are two main reasons for the formation of unissued shares. First, under the authorized capital system, the company can be declared established after the promoters raise a certain percentage of the registered capital. At this time, the company holds many unissued shares. In the future, when appropriate, the board of directors proposes the shareholders' meeting Re-issue after approval. Secondly, due to investors' insufficient understanding of the newly established company, coupled with fluctuations in the stock market, competition in other stocks or securities, etc., the issuing company did not realize the planned number of shares to be issued. The difference between this number of issued shares and the number of planned shares is the unissued shares.