Authorized, Issued, and Outstanding Shares of Stock

 

Outstanding Shares pic
Outstanding Shares
Image: investopedia.com

Longtime entrepreneur Darin Pastor serves as the CEO of Capstone Affluent Strategies, a California-based wealth management firm. In this capacity, Darin Pastor oversees the purchase of outstanding shares of stock from other companies.

When a business incorporates, its number of authorized shares is specified. Within the incorporation documents, a company must include the number of authorized shares it can distribute. Since businesses do not have to issue every stock they authorize, most companies set their number of authorized shares in the millions or billions so they can issue stock comfortably as they grow.

Any stock that is either given to employees or sold to investors is issued stock. The number of issued shares given by a company cannot exceed the number of authorized shares mentioned in the business’ incorporation documents. If it does, shareholders must approve the increase in authorized shares before the company can give more.

Outstanding stock refers to any issued stock that has not been purchased by investors, given to employees, or reacquired by the business. The investment bank handling a company’s initial public offering usually sets the number of outstanding shares, but this number will change as the company buys back its stock or uses the stock to compensate employees.

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Cops 4 Causes Honors Surviving Tuskegee Airman

 

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Cops 4 Causes
Image: cops4causes.org

Darin Pastor founded and serves as the CEO of Capstone Affluent Strategies, Inc., in East Amherst, New York. Passionate about nonprofits focused on serving the community, Darin Pastor supports the West Hollywood, California-based organization Cops 4 Causes.

At one of its recent events, Cops 4 Causes honored a very special person, Lt. Col. Robert (“Bob”) J. Friend. Lt. Col. Friend is a 95-year-old U.S. veteran and one of the only surviving members of the World War II era Tuskegee Airmen known as the Red Tails. He was a recipient of the Congressional Medal of Honor in 2007.

Attended by first responders, veterans, and active military personnel, Cops 4 Causes’ special evening also including a performance of the play FLY by the Pasadena Playhouse. FLY recounts the story of the Tuskegee Airmen, who were the first African-American pilots who served as Army Air Corp fighters in WWII. In addition to honoring Lt. Col. Friend, the Cops 4 Causes event raised money for the Tuskegee Airmen Scholarship Foundation and a camp program for Los Angeles County foster youth.

Dream Center Helps Stem the Tide of Hunger in Los Angeles

 

Dream Center pic
Dream Center
Image: dreamcenter.org

Darin Pastor serves as CEO of Capstone Financial Group, Inc., based in the Los Angeles area. The investment holding company assists the companies whose outstanding stock it acquires to boost share value and return on investment. Darin Pastor is additionally concerned with the wellbeing of his community, and over the years has made contributions to charities dedicated to education and social welfare.

Among these is the Dream Center in Los Angeles. For more than 20 years, this faith-based community has worked to help people experiencing poverty, homelessness, addictions, and abuse. The Dream Center offers both residential and outreach programs to help in the fight against these problems.

This type of assistance is especially meaningful for people in the area. The Los Angeles Regional Food Bank estimates that more than 15 percent of the population of Los Angeles County is food insecure. This represents a total of some 1.4 million individuals.

The Dream Center houses its own food bank. In addition, every month it provides more than two dozen sites with 500,000-plus pounds of food. Tens of thousands of people are able to eat on a regular basis, thanks to these efforts.

The Dream Center’s Food Truck Ministry accepts volunteers to help distribute food through its outreach program.

The Usefulness of Determining Market Capitalization

 

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Market Capitalization
Image: investopedia.com

Since 2012, Darin Pastor has served as CEO of Capstone Financial Group, Inc., an investment holding company headquartered in Southern California. Through Capstone, Darin Pastor and his team work to acquire outstanding shares of stock in other companies and provide strategies for the ongoing improvement of those entities.

A major concern for any investor is how to choose which company merits an expenditure of funds and effort. One way to do so is to evaluate market capitalization, with investors typically designating companies as “small cap,” “mid cap,” or “large cap.”

In conducting their due diligence, investors should determine value beyond the current price per share. They also should figure out the correct figure for that company’s market capitalization, that is, the entire cost of its acquisition.

To summarize: A company’s market capitalization is the price of its entire portfolio of outstanding shares of its common stock, multiplied by the current price per share of that stock.

For example, a company with 2 million shares of stock available, whose price is $25 per share, has a market capitalization of $50 million. Performing this calculation can help investors avoid the trap of assuming that a larger stock price equals a larger company, as they compare the true market capitalization value among companies of various sizes.