Results for authorized stock
On this page:
 
Investment Dictionary:

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 stock shares, which are important to understand for analyzing ratios. 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


 
 

Maximum number of shares of any class a company may legally create under the terms of its Articles of Incorporation. Normally, a corporation provides for future increases in authorized stock by vote of the stockholders. The corporation is not required to issue all the shares authorized and may initially keep issued shares at a minimum to hold down taxes and expenses. Also called authorized stock.

 
Banking Dictionary: 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.

 
Accounting Dictionary: Authorized Capital Stock

Maximum number of shares of common stock that can be issued under a company's Articles of Incorporation. If a public issue of stock is involved, the SEC and the relevant state must approve it. Issued shares are usually less than the authorized shares.

 
WordNet: authorized stock
Note: click on a word meaning below to see its connections and related words.

The noun has one meaning:

Meaning #1: the maximum number of shares authorized under the terms of a corporation's articles of incorporation
  Synonyms: authorized shares, capital stock


 
 

Join the WikiAnswers Q&A community. Post a question or answer questions about "authorized stock" at WikiAnswers.

 

Copyrights:

Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved.  Read more
WordNet. WordNet 1.7.1 Copyright © 2001 by Princeton University. All rights reserved.  Read more

Search for answers directly from your browser with the FREE Answers.com Toolbar!  
Click here to download now. 

Get Answers your way! Check out all our free tools and products.

On this page:   E-mail   print Print  Link  

 

Keep Reading

Mentioned In: