Skills · by @omeedtabiei

Authorized vs. Issued Shares — How Startup Ownership Actually Works

Explains how startup share ownership actually works — the difference between authorized and issued shares, how to calculate ownership percentage, why 10 million authorized shares is standard, what fully diluted means, and how dilution works. Corrects the common misconception that owning 6M of 10M authorized shares = 60% ownership. Use this when a founder is confused about their ownership percentage, hasn't issued stock yet, is adding co-founders or advisors, or is trying to understand SAFE or priced round dilution.

Expected outcome: Empowering, not alarming. Dilution is neutral and expected, not something they "suffer" — frame it as how startups work.

What this skill walks you through

1. Authorized vs. Issued Shares — How Startup Ownership Actually Works
2. Purpose
3. Trigger Phrases
4. "I incorporated with 10 million authorized shares and issued 6 million to myself — do I own 60%?"
5. "I just filed my articles of incorporation. What do I do about stock now?"
6. "How do I calculate my ownership percentage?"
7. "If I issue shares to a co-founder, how does that dilute me?"
8. "We're raising on a SAFE — how much will I get diluted?"

Sourced from Authorized vs. Issued Shares — How Startup Ownership Actually Works by Conversational Creation.

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