The Michigan Proposal to Decrease Authorized Common and Preferred Stock is a comprehensive plan put forth by the state to address and regulate the stocks issued by companies within its jurisdiction. This proposal aims to decrease the authorized amount of common and preferred stock, thereby ensuring prudent capital management and increasing investor confidence. One type of Michigan Proposal to decrease authorized common and preferred stock is the "Graduated Decrease Plan". Under this plan, companies are required to gradually reduce the authorized amount of common and preferred stock over a designated period. This approach allows companies to adjust their capital structure gradually, minimizing disruptions and preserving stability in the market. Another type is the "Immediate Reduction Act" proposed within the Michigan Proposal. This act mandates an immediate decrease in the authorized common and preferred stock of companies. This type of proposal generally aims to rapidly improve financial health, mitigate potential risks associated with excessive stock issuance, and encourage companies to optimize their capital allocation strategies promptly. The Michigan Proposal to decrease authorized common and preferred stock considers various key elements. These include evaluating the financial standing of companies, their historical stock issuance patterns, market conditions, and the need for recalibrating authorized stock levels to align with future growth prospects. By implementing the Michigan Proposal, the state intends to encourage responsible and sustainable growth within its business landscape. Decreasing authorized common and preferred stock will help prevent over-inflation of equity, enhance the overall liquidity position of companies, and foster a more balanced and stable investment environment. Keywords: Michigan Proposal, authorized common stock, authorized preferred stock, decrease, capital management, investor confidence, Graduated Decrease Plan, Immediate Reduction Act, capital structure, financial health, risks, stock issuance, market conditions, responsible growth, sustainable growth, equity inflation, liquidity, investment environment.