Shares Authorized

[SHERZ aw-THOR-ized]

What is the definition of Shares Authorized?

The maximum number of shares of stock that a company is legally permitted to issue as specified in its articles of incorporation.

Using Shares Authorized in an Example

A corporation with 1,000,000 shares authorized can issue up to that number of shares to investors. If the company decides to issue additional shares beyond this limit, it must first amend its articles of incorporation.

Using Shares Authorized in a sentence

During the board meeting, the CFO discussed the increase of shares authorized to attract more investors and support expansion plans.

Related Terms

Surviving Spouse

A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.

Learn More

Swap

A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.

Learn More