authorized shares


The maximum number of shares of stock that a company can issue. This number is specified initially in the company's charter, but it can be changed with shareholder approval. Generally a much greater number of shares are authorized than required, to give the company flexibility to issue more stock as needed. also called authorized stock or shares authorized.

Use authorized shares in a sentence

You need to try and figure out how many authorized shares you should offer to your new investors in the future.

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There were several authorized shares and we could issue all of them from our company to others outside of our company.

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Some of the shareholders voted against issuing more authorized shares because of they were concerned about the effect on the company's earnings per share.

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authorized share capital authorized stock