authorized stock

noun phrase

Meaning

The maximum number of shares that a corporation is legally permitted to issue according to its articles of incorporation.

Examples

The board of directors decided to increase the authorized stock to provide more flexibility for future capital raises.
Before buying shares, investors should check the company's authorized stock to understand how much dilution might occur.

Synonyms: authorized shares, nominal capital, authorized capital, registered capital

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authorized stock

noun phrase

Pronunciation: /ˈɔːθəraɪzd stɒk/

Definition

The maximum number of shares that a corporation is legally permitted to issue according to its articles of incorporation.

Examples

The board of directors decided to increase the authorized stock to provide more flexibility for future capital raises.
Before buying shares, investors should check the company's authorized stock to understand how much dilution might occur.
The startup's initial authorized stock was set at one million shares to accommodate early employees and venture capital partners.

Synonyms of authorized stock

Words with a similar meaning to authorized stock:

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