What does "Outstanding Capitalization" mean? For a start-up, if 7.5M shares are issued and 10M shares are authorized, does outstanding capitalization mean 10M shares or 7.5M shares?
Thanks in advance.
UPDATE: I do mean "outstanding capitalization." In our offer letters, it reads "You will be issued stock options to purchase x% of ACME's equity, based on the outstanding capitalization as of the date of your first day of employment." So that's why I'm wondering what outstanding capitalization means because our shares are calculated based on it.