Issuing shares means the creation of a share class in a company, adding a specific number of shares in it, and then transferring them to a subscriber.
Issuing shares is a term used when shares are being issued to a to-be shareholder in the company. The reason this person is the to-be shareholder is because they would eventually own the shares of the company after issuance. The process of issuing shares to a person is called issuance, allotment or allocation. In short, issuing shares means the creation of a share class in a company, adding a specific number of shares in it, and then transferring them to a subscriber. Once the issuance has taken place, the subscriber becomes a shareholder in that company. This would also need a formal entry in the share registry of the company. As soon as the issuing of shares has been completed, these shares are then called issued shares. To know more about issuing shares on Eqvista, check out our blog or knowledge center here. And if you have not yet started using Eqvista as your cap table application, it’s time to do so. Check out our cap table software here & contact us today!