Difference between revisions of "Directory:Library Eclectica/Shares authorized"
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'''Shares authorized''' is the maximum number of shares that a company can issue. This number is specified in the company's [[articles of association]] but can be changed by [[shareholder]] approval. A company usually authorizes a higher number of shares than required to be able to issue stock in the future. | '''Shares authorized''' is the maximum number of shares that a company can issue. This number is specified in the company's [[articles of association]] but can be changed by [[shareholder]] approval. A company usually authorizes a higher number of shares than required to be able to issue stock in the future. | ||
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*[http://www.investopedia.com/terms/a/authorizedstock.asp Investopedia.com] | *[http://www.investopedia.com/terms/a/authorizedstock.asp Investopedia.com] | ||
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[[Category:Finance]] | [[Category:Finance]] | ||
[[Category:Equity securities]] | [[Category:Equity securities]] | ||
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Revision as of 05:23, 22 April 2009
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Shares authorized is the maximum number of shares that a company can issue. This number is specified in the company's articles of association but can be changed by shareholder 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 + Shares unissued
- Shares issued = Shares outstanding + Treasury stock
See also
External links
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