Many are worried about more dilution coming. Personally I currently hold in excess of 4 mil shares as my only concern is will they get a license period. I do not believe they can dilute without a shareholder vote. Hopefully I've got this right. Please check this out and comment as this has everything to do with FITX.
Not all shares of stock are created equally. Authorized, restricted, float, outstanding and unissued shares all have different attributes. Investors need to know these terms to make informed decisions.
You will hear these terms and see some of them used in financial ratios, so it is important to understand how these types of shares differ. I;ve got this same info from several sites my in regards to FITX dilution. The A/S is capped at 3.5 bil where I believe it stays.
First, let’s define the terms, and then I’ll explain why it is important to understand the difference.
• Authorized Shares – These shares represent the total number of shares of stock authorized when the company was created. Only a vote by the shareholders can increase this number of shares.
However, just because a company authorized a certain number of shares doesn’t mean it must issue all of them to the public. Most companies retain shares for use later called unissued stock or shares.
• Unissued Shares – Shares a company retains in its treasury and not issued to the public or to employees are unissued shares.
• Restricted Shares – Restricted shares refer to company stock used for employee incentive and compensation plans. Restricted stockowners need permission of the SEC to sell.
There is a waiting period after a company first goes public where insiders’ restricted stock is frozen. When insiders want to sell their stock, they must file a form with the SEC declaring their intention. Even insiders of established companies must file with the SEC before selling their restricted stock.
• Float Shares – Float refers to the number of shares actually available for trade on the open market. You and I can buy these shares.
• Outstanding Shares – Outstanding shares includes all the shares issued by the company, which would be the restricted shares plus the float.
Here’s a simple example with numbers to illustrate the relationship of these different shares:
• Authorized Shares – 100
• Unissued Shares – 20
• Restricted Shares – 10
• Float – 70 (100 – 20 – 10 = 70)
• Outstanding Shares – 80 (10 + 70 = 80)
Why is this Important?
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