Authorized Stock
Barron's Banking Dictionary:
Top
Authorized Stock (Shares)
Maximum number of shares in each class of capital stock that a corporation can legally issue. (It may not actually issue all of the shares authorized.) The total shares per class of stock, for example common stock, or preferred stock, is specified in the corporate charter or Articles of Incorporation. The number of authorized shares can be increased by amending the articles of incorporation or charter, which is usually accomplished by shareholder vote.
Related Videos:
Top
Authorized Stock
Investopedia Financial Dictionary:
Top
Authorized Stock
The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet.
Also known as "authorized shares" or "authorized capital stock".
Investopedia Says:
This number can be changed only by a vote of all the shareholders. Management will typically keep the number of authorized shares higher than those actually issued. This allows the company to sell more shares if it needs to raise additional funds.
Related Links:
We go over different types of shares and what investors need to know about them. The Basics Of Outstanding Shares And The Float
Learn about the components of the statement of financial position and how they relate to each other. Reading The Balance Sheet
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
Read more
Mentioned in
Authorized Shares or Authorized Stock
(business term)
production requirements
(industrial engineering)
Registrar
(finance term)
Issued Capital Stock
(in accounting)
» More