Authorized Stock
The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet.
Investopedia Commentary
This number can be changed only by a vote of all the shareholders. Management will typically keep the number of authorized shares higher than those actually issued. This allows the company to sell more shares if it needs to raise additional funds.
Also known as "authorized shares" or "authorized capital stock".
Related Links
The Basics Of Outstanding Shares And The Float
Reading The Balance Sheet
See also: Balance Sheet, Capital Account, Corporation, Float, Fundamental Analysis, Outstanding Shares, Stock
Also spelled: Authorized share, Authorised Share, Authorized Equity, authorized capital stock