Definition | Issued shares are a total number of shares created or issued by a company. It includes the shares repurchased by a company. | Outstanding shares are the number of shares owned by shareholders. It doesn't include the shares repurchased by a company. |
Treasury shares | It includes the shares held in treasury, which are used for future sales or purchases of other businesses | It does not include treasury shares |
Equation | Issued shares = outstanding shares + treasury shares | Outstanding shares = issued shares - treasury shares |
Monetary flow | It provides monetary supply to the company | It does not provide any monetary support to the company |
Financial statements | Issued shares are not reported on financial statements | Outstanding shares are reported on the balance sheet under owners equity |
Voting power | It does not determine voting power | It determines voting power in the company for each shareholder and the total number of voting shares |
Financial performance | They do not provide accurate information about the company's financial performance | They are useful in determining the financial performance of the company. For example, it is used to calculate earnings per share (EPS) |
Meena Khan