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Just when you thought you knew what stocks were, you find out that there are actually different types of stocks, and each one is different from the other. There are authorized stocks, restricted stocks, floating stocks, unissued stocks and outstanding stocks. And no investor can decide what stock to buy with their linux financial software wisely if he does not know what all these are.

First off, authorized shares are the total number of shares that the company has been authorized to issue, as declared in the articles of incorporation approved by the Securities and Exchange Commission (SEC). The authorized shares can be increased by a vote of the shareholders, and approval of the SEC. Unissued shares, on the other hand, are shares that the company chooses to retain instead of issuing. There is also what is called restricted shares. These are stocks reserved for issuance to employees as part of their compensation packages.

Aside from these, there is also the matter of float shares and outstanding shares. Float shares are shares of stock that are traded in the stock market, and are open to be bought by the public. Finally, outstanding shares refer to the total number of shares issued, which includes the float and the restricted shares.