Shares authorized
Encyclopedia
Shares authorized is the maximum number of shares that a company can issue
Issued shares
Issued shares is a term of law and finance for the quantity of shares of a corporation, which have been sold or awarded and are subsequently held by the shareholders....

. This number is specified in the company's articles of association
Articles of Association
The Continental Association, often known simply as the "Association", was a system created by the First Continental Congress in 1774 for implementing a trade boycott with Great Britain...

 but can be changed by shareholders
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....

' approval. A company usually authorizes a higher number of shares than required to be able to issue stock in the future.

Basic formulae

  • Shares authorized = Shares issued
    Issued shares
    Issued shares is a term of law and finance for the quantity of shares of a corporation, which have been sold or awarded and are subsequently held by the shareholders....

     + Shares unissued
  • Shares issued = Shares outstanding
    Shares outstanding
    Shares outstanding are common shares that have been authorized, issued, and purchased by investors. They have voting rights and represent ownership in the corporation by the person or institution that holds the shares. They should be distinguished from treasury shares, which is common stock held by...

     + Treasury stock
    Treasury stock
    A treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ....


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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