Legal Definitions - outstanding

The term "outstanding" has two primary meanings in a legal and financial context:

1. Unsettled or Unpaid Obligation

When something is described as outstanding in this sense, it means that an obligation, payment, or task is due or owed but has not yet been settled, paid, or completed. It signifies an item that remains unresolved or pending.

• Example 1: A freelance graphic designer completed a logo design for a client last month. The invoice for the design fee, totaling $1,500, was sent with a 30-day payment term, and that term has now passed without payment.
• Explanation 1: The $1,500 payment is considered outstanding because it is a sum of money that is due to the designer but has not yet been received from the client.
• Example 2: A property management company has a list of maintenance requests from tenants. One request, to repair a leaky faucet in Apartment 3B, was submitted a week ago but the repair has not yet been performed.
• Explanation 2: The repair for the leaky faucet is an outstanding task because it is an obligation that needs to be fulfilled but remains incomplete.

2. Publicly Issued and Held (Financial Instruments)

In a financial context, outstanding refers to the total number or value of financial instruments (such as shares of stock, bonds, or options) that have been issued by a company or government and are currently held by investors in the market.

• Example 1: "Global Innovations Corp." is a publicly traded company that has issued 50 million shares of its common stock. These shares are owned by various individual investors, mutual funds, and other financial institutions.
• Explanation 1: The 50 million shares are considered outstanding shares because they have been issued by Global Innovations Corp. and are currently held by investors, representing their ownership in the company.
• Example 2: The national treasury has issued $100 billion worth of government bonds to finance public projects. These bonds have been purchased by banks, pension funds, and other entities, who will receive regular interest payments.
• Explanation 2: The $100 billion worth of bonds are outstanding bonds because they have been issued by the government and are currently held by investors, representing the government's debt obligation to those bondholders.