1. SHARES AND SHARE ISSUES There are usually two types of shares in a company namely; authorized shares and issued shares. Authorized shares refer to the amount of share capital created in the company at its inception; it is the possible maximum number of shares that a company can issue. If for instance a company has an authorized share capital of $ 2 million, then it may issue a maximum of 2 million shares at $ 1 each or issue $ 20 million shares at 10p each. Issued Shares refers to the share capital that has been released to shareholders, for instance in the case of 2 million authorized shares, the company may decide to issue 1.5 million shares to its shareholders and retain 0.5 million unissued shares. Classes Of Shares Issued By A Company All shares of the company are presumed to be equal unless the articles of the company states otherwise. However, issue of shares will be classified separately, if they have different allocations on dividends, voting rights differ and treatment at the point of company closure or winding-up.