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Authorized Stock


The maximum number of shares of stock (collectively known as capital stock), both preferred and common, that a company is authorized to issue and sell to investors, as stated in its corporate charter (articles of incorporation). The authorized stock consists of two components: issued capital stock and unissued capital stock. The company may choose to issue less than the amount of authorized capital shares for tax purposes or cost considerations.

Authorized stock is also known as authorized shares.



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This section covers a wide-ranging array of terms and concepts, among others, in the area of exchanges and financial marekts at large ...
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