Authorized Shares
/ˈɔːθəˌraɪzd ʃɛərz/
Definitions
- (n.) The maximum number of shares a corporation is legally permitted to issue as specified in its articles of incorporation.
The company increased its authorized shares to raise additional capital.
Forms
- authorized shares
- authorized share
Related terms
See also
Commentary
Authorized shares set a legal limit on issuance and require formal amendment to increase; often confused with issued shares.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.