Friday, October 14, 2011

Stock Shares Aren't Equal

Not all shares of stock are equal. There are several different types of shares out there. When looking to invest, it is necessary that you have the complete picture in view. Before you can make an informed investment decision, you need to know the terms that define shares.



Authorized shares represent the total number of shares of stock that were authorized when the company was created. The number of shares can only be increased through a vote by the shareholders. Although the shares were authorized, that does not mean that they were all issued to the public.



Some companies will retain shares to use later. These are called treasury shares. You may see a company release treasury shares onto the market in order to

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