What does issued stock refer to?

Issued stock refers specifically to the number of shares that have been sold to investors. This includes shares that are currently held by shareholders, whether they are individuals or institutional investors. When a company issues stock, it is essentially creating ownership in the company that is available for sale; therefore, the shares that have been issued represent the total ownership that has been distributed among the shareholders.

The concept is fundamental in understanding how companies raise capital. When investors buy these shares, they contribute funds to the company in exchange for ownership stakes. This transaction forms the basis for how companies can finance operations, expand, and invest in growth opportunities.

In contrast, the other options describe different aspects of stock and equity management. The total number of shares permitted to be issued refers to the company's authorized stock, while the number of shares available for public trading specifically points to shares that are actively traded in the stock market, which may not represent all issued shares if some are held by insiders or not traded. The total number of shares owned by the company itself is a mischaracterization, as issued stock pertains only to those shares sold to and held by investors, not those held by the company in treasury.