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Hello, I have a newly started C Corp; we had 10 million shares authorized to issue. There are 4 founders and each got 250,000 shares. We now have four more advisors being added and we are giving them 1%. So do we give them 100,000 shares (1% of 10 million) or do we give them 1% of what the founders issued themselves? It seems weird that founders who own the company would have 250k, but advisors at only 1% have 100k? I'm not sure if I'm supposed to issue more stock to each founder or how equity works.
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Typically you would issue based upon the amount that is actually being distributed, not the total stock authorized to issue.
Answered on Apr 29th, 2016 at 9:07 AM