authorized capital stock

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Authorized Shares

The maximum number of shares a company is allowed to issue. Generally, the company's charter specifies the number of authorized shares, but shareholders can increase or decrease it according to procedures listed in the charter. Typically, the number of authorized shares is larger than the required amount in order to give a company the greatest amount of flexibility. Authorized shares are also called authorized capital stock or simply authorized stock.

authorized capital stock

The number of shares of capital stock that a business may issue. Authorized capital stock is stated in a firm's articles of incorporation; changes in it may occur only if approved by the stockholders. The number of shares authorized often greatly exceeds the number actually issued. In this way, management can issue more shares to raise additional funds, or it can use the shares to make an acquisition. Also called shares authorized.
References in periodicals archive ?
In a disclosure to the Philippine Stock Exchange, Pryce said it secured the approval of the Securities and Exchange Commission (SEC) to raise its authorized capital stock from P2 billion to P2.
24 billion additional common shares of Pure Foods out of new shares coming from an increase in authorized capital stock and 10:1 stock split.
Union Bank of the Philippines (UnionBank) has announced the obtaining of approval on its planned increase in authorized capital stock to P23.
The rights-offer shares will come from the increase in its authorized capital stock to P28 billion, from the previous P16 billion.
Philab also announced that the board of directors approved and authorized the issuance of 100 million common shares of the unissued authorized capital stock of DNA at P2.
5 million common shares out of the unissued portion of its authorized capital stock, which would dilute the cumulative ownership of trading participants.
Federal Resources has a pending application with the Securities and Exchange Commission for the increase in its authorized capital stock to P2 billion from P100 million.
According to PNB, the SEC cleared last week the amendments to its Articles of Incorporation, raising its authorized capital stock to P70 billion divided into 1.
As a result of the additional issue of shares the authorized capital stock get 45% higher, shares will be placed among the current holders aPromsvyaz Capital B.
The measure also increases the authorized capital stock of PCIC from P2 billion to P10 billion.

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