Share Structure Details

Upon evaluating a company’s security details at the share structure level, there several items to be evaluated. For example, authorized shares – sometimes the authorized shares are unlimited, while other times the ability to issue additional shares may already be met – restricted issues. In some cases, the company could issue additional shares, but they are limited in the number of shares required to secure the necessary amount of funding.

There are certain circumstances when a company is facing restriction issues where the ability to issue required number of shares off the treasury has already been met. While working around treasury share restrictions, these concerns can be me in a custom-tailored financing solution. When structured properly, a corporate loan structure could allow for the parent (public company) to work around share structure issues.

One of the specialty financing features incorporated within our corporate loan structures, in most cases, this type of a financing mechanism could provide the flexibility of working around share structure limitations. Depending on the situation, limitations on Authorized and Restricted shares can prevent a company from gaining access to liquidity. Our core competency in customizing corporate loan structures allows us to align your company needs with an unlimited amount of funding without the need of red-tape and regulatory filings. This could be solved by taking advantage of certain corporate loan structures such as a back-to-back loan, an equity swap, or perhaps a wrap-around loan is some cases.


Our executive team of experts assists borrowers at each market cap level on corporate loan structures consisting of company share structure issues. As we work with companies at all market cap levels, starting with a basic understanding will help our niche market – the micro-cap & mid-cap companies who don’t have access to a local bank or major lending institution.

“Issuing shares off the Treasury to be able to get the loan” – “Issuing shares off the Treasury to pay people – Used as a monetary currency”

A stock’s share structure impacts everything from how liquid a position will be to how likely it is that existing shares could be diluted. In some scenarios, the issuance of new shares off the treasury in various corporate loan structures could appear to be a concern. However, depending upon the purpose for issuance of additional shares – by injecting secured funding into a company can also result in an increase in the company market cap as the share price increases.

Inside corporate loan structures we have listed several reasons why a company may consider specialty financing arrangements while leveraging a corporate loan structure. This process is different dependent upon which exchange and country of origin on the underlying collateral. Regardless the situation, there are numerous instrumental aspects that could require appropriate regulatory filings, announcements, board meetings, or a shareholder approval to name a few.

What is a Stock’s Share Structure?

A stock’s share structure is a description of how a company’s shares are split up. That is, it reflects how many shares exist and how much ownership of a company each share represents.

At the end of the day, the ownership in a company represented by a single share matters more than the price of that share. Say, for example, two different stocks are each priced at $1.00 One may represent 0.0001% ownership of a company per share, while the other could represent 0.1% ownership per share. That’s a big difference, and share structure reflects that.


Why Does a Stock Share Structure Matter? Share structure matters for a few reasons. 

Authorized Shares

A company’s number of authorized shares is the total number of shares that can possibly be issued. This often isn’t the same as the number of shares on the market. Rather, it’s the total potential supply, if a company decided to issue all the shares it legally could.


Outstanding Shares

The number of outstanding shares a company has is the number of shares that have already been issued. It includes shares held by company executives, insiders, investors – early-stage and investors groups (family) and institutional investors, so the number of outstanding shares isn’t necessarily the number of shares available that trade in the open market.

If a company’s outstanding shares are much lower than the authorized shares, it’s possible that the company could issue new shares in the future.

Restricted Shares 

Restricted shares are shares awarded to company insiders and employees. They cannot be sold until they become vested, which may occur after a certain length of time or after specific corporate milestones are achieved. When restricted shares become vested, they can be sold and are considered as part of a company’s float.