# authorized stock

**Pronunciation:** /ˈɔːθəraɪzd stɒk/ · AW-thuh-ryzd STOK

**Part of speech:** 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.
- The startup's initial authorized stock was set at one million shares to accommodate early employees and venture capital partners.

## Synonyms

- authorized shares — The most common interchangeable term used in financial reporting.
- nominal capital — Refers to the total value of the authorized shares.
- authorized capital — A broader term encompassing the total value of all authorized shares.
- registered capital — Commonly used in international contexts to denote the legal limit of capital.

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