Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
The difference between authorised and issued share capital is useful for investors to understand. Authorised share capital is the maximum number of shares a company is permitted to issue at any given time, while issued share capital is the actual number of shares that a company has issued.
Meaning of authorized share capital in English the largest number of shares that a company can offer for sale at a particular time: Shareholders approved an increase of 32.6% in the bank's authorized share capital.
Authorized shares, or authorized stock, are simply a legally allowed maximum number of shares that a company can issue to investors. The number of authorized shares is specified in the company's articles of incorporation. You can also see the number in the capital accounts section on the balance sheet.
Authorized stock represents the highest number of shares a corporation is legally allowed to issue, as outlined in its corporate charter. This number sets the ceiling for how many shares can be distributed to shareholders through public offerings, private sales or employee stock options.