Outstanding shares vs. preIPO Shares

FINRA FINRA Series 7
1

Hi
I cannot understand why preIPO shares are not considered “oustanding” if they are not subject to lock up. They are exactly the same as shares issued during the IPO
Pls help tks

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2

Hi @Esther_Cummings - when you say “pre-IPO shares,” I assume you mean authorized shares that have not yet been issued. If so, a share is not considered outstanding until it is held by a shareholder. By definition, a share is outstanding only if it is owned by a party other than the issuer.

Does that answer your question?

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