Also found in: Dictionary, Thesaurus, Legal, Acronyms, Encyclopedia.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved