How is the amount of shares a company can sell determined?

Is it based upon earnings? I know companies usually have hundreds of millions of shares... but how do they come up with that number? Is it the underwriters job to figure that out?

Asked By: Rainingcali - 3/18/2008
Best Answer - Chosen by Asker
The underwriter determines how many shares the company has based on how much capital a company wants to raise.
Answered By: West - 3/19/2008
Additional Answers (4)
It depends on how many the company was authorized to issue by the jurisdiction of its organization
Answered By: botygy - 3/18/2008
When companies are set up they state the number of shares that will be in the company...nowadays they usually sign up for unlimited amount of shares, this sounds bad but isn't, the amount of issued shares or shares outstanding on a diluted basis( accounts for stock options and warrants) is what is important, this can... More
Answered By: bob shark - 3/18/2008
Publicly traded corporations set the number of shares they have in their charter or bylaws. Periodically companies propose charter/bylaw changes to increase their authorized number of shares; this is subject to stockholder approval... More
Answered By: Ben - 3/18/2008
They can sell as many as they want to raise capital. Yes, there is a limit in the company by-laws, but the company sets this limit itself. The public maximum capitalization number is left over from the days when some corporate managers would give stock to themselves and their friends without the existing shareholders... More
Answered By: Bob - 3/18/2008
Sponsored results
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Local Positions Open in Your Area. Hiring Now - Apply Today!
Click. Search. Apply. Free!
Jobs hiring near your local area. Part-time, Full-time, Work at home.

Other Career Questions

What is your current job? Why did you choose this job? What do you enjoy about your job? What do you dislike about your job? What would be your perfect job? Would you rather have this j...
3 answers - Asked By: drop pants not bombs!.♥ - 3/2/2010
Where are the jobs? Is productivity and globalization creating a permanent “recession” of jobs? My main issue is I am doing a paper for school and have no idea where to begin. I was hoping suggestions...
4 answers - Asked By: bayebd24【ツ】 - 11/21/2007
Hi ok im 19 and about to start college to do an acess course into a university. Ive been browsing through all the courses and im tottaly stuck! I thought politics but im scared ill end up with some r...
1 answers - Asked By: roseparkerly - 1/26/2009

Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.

Popular Articles

Best-Paying Work-from-Home Jobs Article Rating
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook Article Rating
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
For Employers: Post Jobs | Search Resumes | Advertise
About Monster | Work for Monster | Advertise with Us | AdChoices | Partner with Us | Investor Relations | Social Media
Terms of Use | Privacy Center | Accessibility Center | Help | Security | Contact Us | Sitemap | Mobile
©2014 Monster - All Rights Reserved U.S. Patents No. 5,832,497; 7,599,930 B1; 7,827,125 and 7,836,060 MWW - Looking for Monster Cable? - V: 2014.1.40.24-301