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Technology Stocks : Intel Corporation (INTC)
INTC 50.22-0.7%Feb 9 3:59 PM EST

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To: cody andre who wrote (5181)11/14/1996 11:25:00 AM
From: David M Gambs   of 186894
 
Cody,

It is my understanding, and that of others on this thread, that a company has a total number of shares that they can have outstanding & in the treasury. This is a fixed number. It can only be change by a vote of the stock holders (in Intel's case). Thus, if the authorized shares is set at 100,000, a company who has 70,000 outstanding shares cannot perform a 2:1 split as they would then have 140,000 in float which is beyond the 100,000 authorized. It does not have anything to do with market cap, it is strictly a number game against a set ceiling. This ceiling is the authorized shares. The company cannot issue or otherwise run their total number of shares beyond what has been set.

Hope this helps,
dmg-
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