What is the Common Stock Issued of a Company?

Common Stock Issued: TL;DR

Common stock issued refers to the total number of shares that a company has sold and are currently owned by its shareholders. These shares represent ownership in the company and often come with voting rights. This term is often listed under the shareholders' equity section on a company's balance sheet.

Common Stock Issued = Total Shares Sold - Treasury Stock

In-Depth Understanding

The term 'Common Stock Issued' is more than just the number of shares a company has sold. It represents the company's equity capital, which is the fund raised by issuing shares to investors. This money is then used to finance various business operations, acquisitions, and expansions.

The number of common stock issued can change over time, generally increasing with additional stock issuances and decreasing when the company buys back its shares, known as treasury stock.

Investors often look at the number of common stock issued to assess a company's financial health and its potential for growth or risk. A company with too many shares issued compared to its earnings may be overvalued, while a company with too few may be undervalued.

Real-world Examples

A Technology Company - Apple Inc.

Apple Inc. has billions of common shares issued. In 2020, the company had approximately 17 billion shares issued. The number of shares issued by Apple has been affected by both additional issuances and significant share buyback programs.

A Retail Company - Amazon.com, Inc.

Amazon.com, Inc. had around 500 million shares issued in 2021. The company doesn't frequently issue new shares or buy back its existing ones, leading to a relatively stable number of shares issued over the years.

An Automotive Company - Ford Motor Company

Ford Motor Company, in 2021, had approximately 4 billion common shares issued. Ford has occasionally issued new shares to raise capital for its operations, especially during tough financial times, such as the 2008 financial crisis.

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