Issuing Shares

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.

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