authorized stock

Definition

The maximum number of shares of stock that a company can issue. It's specified initially in the company's charter, but it can be changed with shareholder approval. also called authorized shares or shares authorized.

Use authorized stock in a sentence

You should try to make sure that you do your homework before you decide which authorized stock to invest in.

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They had enough authorized stock within their company and everything was going good, but things were not going great at all.

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The new company, despite the fact that they have 1 million authorized stock, decided only to sell 700,000 of the shares during the IPO.

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authorized shares authorizing resolution