What is Unissued Stock?
Unissued stock is any type of stock that is authorized for issuance by a given corporation, but for some reason has not been released. While valid shares of stock that are accounted for in the charter of the company, the stock remains un-exchanged for money or services of any type. This is in contrast to issued stock, which has been released for sale and is currently in circulation. All corporations wishing to issue stock at some point will include provisions within their charters that cover this possibility. Included in the details of the charter will be specifics that relate to the maximum number of shares of each class or type of stock the company may issue. The company is not under an obligation to issue the maximum number of shares at any given point in time, nor is it necessary to place all authorized shares in general circulation. Many corporations do choose to hold back a certain number of unissued stock shares for varying reasons. In some instances, a corporation may choose to
