An excess of issued shares over authorized shares.

Capital stock shares issued above the amount authorized to be issued. The security's registrar (typically a bank acting as an agent) works with the security's transfer agent in issuing new shares and canceling and reissuing certificates for transfer to new owners. These two parties keep track of the outstanding shares to prevent overissuance of shares. See: Authorized Shares; Capital Stock; Outstanding Stock; Registrar; Transfer Agent

An issue of stock or bonds by a corporation in excess of the amount authorized

Syn: excess issue.