Financial Definitions - Authorized Shares
The term “authorized shares” (or authorized stock) means how many shares a company can legally sell (or create) according to their company articles and official documentation. Just because a company is authorized to create a said amount of shares (or stocks), does not mean they will issue them all. Often companies will hold off on issuing stocks in order to save on taxes. A corporation with the vote of it’s shareholders will plan for the eventual rise of authorized stock.
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