Mr Cooper Group Inc (COOP)

[Evintos]

Wouldn't those authorized shares have to be issued in order to be part of a r/s or no? 3.5 billion shares for a company with no visible business and twice the number of shares outstanding in our predecessor which had a very large and visible business is hard to try to understand, particularly in the context of everything that has transpired over the past 7 years.jmo

The answer to that question is sorta yes. They would have to be issued. The amount they actually issue can be anything from 0 to all 3.5 billion. The result is a stock split or forward stock split (float increase). (I'm assuming by r/s you mean reverse split). What can also happen with the issuance of the shares is dilution (something I was worried about a while back).

Something that I don't think is likely is a reverse split followed by issuance of shares for dilution but is possible.

Authorized Shares
Authorized shares refer to the largest number of shares that a single corporation can issue. The number of authorized shares per company is assessed at the company's creation and can only be increased or decreased through shareholders' vote. If at the time of incorporation the documents state that 100 shares are authorized, then only 100 shares can be issued.

But just because a company can issue a certain number of shares doesn't mean it will issue all of them to the public. Typically companies will, for many reasons, keep a portion of the shares in their own treasury. For example, company XYZ may decide to maintain a controlling interest within the treasury just to ward off any hostile takeover bids. On the other hand, the company may have shares handy in case it wants to sell them for excess cash (rather than borrowing). This tendency of a company to reserve some of its authorized shares leads us to the next important and related term: outstanding shares.

Read more: The Basics Of Outstanding Shares And The Float http://www.investopedia.com/articles/basics/03/030703.asp#ixzz3oeOiFgR5
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