Vapor Group Inc (VPOR)

[CashBowski]

Let me see if I can explain the 2 classes of shares in detail.

Authorized shares - AS - can be increased or decreased with majority vote and reflects max # of shares that could be issued for debt, acquisitions, compensation, preferred shares, etc. This is where new shares come from.

Note: Their has to always be an adequate # of shares in the AS to accommodate all of the above at all times. This number always remains the same (unless the co. chooses to Increase it). VPOR reduced their AS by 7B (from 15B to 8B) shares because they no longer need the reserve for debt. Each debt holder requires that Co. maintain twice the number of shares that qualify for conversion in reserve at all times with the transfer agent. So, by this reduction they're indicating that debt has been dramatically reduced and/or about to be completely eliminated.

Outstanding shares - OS - reflects the # of shares that have already been issued and are currently trading in the market, and includes the shares you and I and everyone else owns.

The current (and future) price-per-share reflects the Outstanding Shares (OS) -- the market adjusts the price according to # of shares currently issued and trading in the market and will reduce $ pps if more shares are issued or increases $ pps if the company pursues a share buyback, thus reducing the number of free trading shares. Other factors affect pps regardless of OS shares, one of which includes an improving balance sheet.

Although Authorized shares is not reflected in pps or has any bearing on market value, it indicates that the maximum number of shares that could be issued aside from preferred shares since they have to maintain capital structure -- so in this case 8B in AS, minus approximately couple billion for preferred shares, and the remaining shares (=~1B) can potentially be issued for acquisitions, share based compensation, or debt. It goes without saying that they could issue their own shares (preferred shares), but those are restricted at this time and an entirely different subject, however the fact remains that the most # of shares they could issue is 8B. Therefore, AS only gives us a guideline to try to judge what's the worse case scenario.

I think I remember when you got thrown off and confused when Cheds wasn't clear on the difference of the two classes and argued that AS is what counts on the OTC -- which was inaccurate and caused a lot of confusion -- I'm sure you weren't the only one that's been misinformed... https://investorshub.advfn.com/boards/read_msg.aspx?message_id=130440098.

There's so much more to it than simply comparing AS to OS, and OTC is a whole different ballgame than exchange traded equities, but what's common is social media and boards are riddled with misinformation, so it's up to us to take responsibility to educate ourselves outside of these forums to be able to navigate the market independently.

Good luck buddy and don't worry about asking questions.