Authorized Shares vs OS vs Float

Authorized shares represent the maximum quantity of shares a company is permitted to issue, though not necessarily all will be issued.

Outstanding shares encompass the total shares that have been issued, including both restricted and freely tradable shares. This figure holds significance in determining metrics like market capitalization and earnings per share (EPS).

Float denotes the actual number of shares available for trading. It is determined by deducting restricted shares, treasury shares, and insider-held shares from the total outstanding shares. Often, the float is notably lower than the outstanding shares figure.

While the total outstanding shares are crucial for fundamental analysis, closer attention should be paid to the float since it directly impacts stock price movements.