Is there such a thing as "non-outstanding shares"? I ask because I'm trying to understand the relationship between market capitalization, outstanding shares, stock buybacks and ownership in a company.
So for example, I've been lead to believe that if a publically traded company ZZZ Inc. has 100M outstanding shares valued at $1 per share, then the company has a marketing capitalization of $100M. If I had $100M in cash and bought all 100M shares, does that mean I own 100% of ZZZ Inc. and can tell management what to do, start firing people, etc...? Or is there a concept of non-outstanding shares, where by maybe ZZZ Inc. still has a total of 200M shares, half of which are outstanding and another half that is non-outstanding. No one is allowed to buy the non-outstanding shares. And hence, my payment of $100M only gives me control of 50% of the company. Does the concept of non-outstanding shares exist or work in some way that prevent me from owning 100% of the company?
And depending on how the above question is answered, it made me wonder exactly what happens in a stock buyback situation. Let's say 100M shares are outstanding, traded in the open market, and reflect ALL shares of the company. When a company buys back 50M shares, do they convert them to "non-outstanding shares" to prevent anyone from ever buying it again? Hence, no one will ever be able to buy 100% of the company in the open market?
