When a corporation agrees to issue common shares if some specific future event occurs, such shares are known as

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Contingently issuable shares are issued when certain conditions or events are fulfilled. These shares are not included in the calculation of the basic earnings per share until they are actually issued. Potential treasury shares, on the other hand, are the shares that have been issued but are being held by the corporation itself. Convertible common shares are the shares that can be converted into a different form of ownership, such as preferred shares. Potential common shares are not a commonly used term and do not have a specific meaning.

When a Corporation Agrees to Issue Common Shares If Some