What are Authorized Shares?
As every shareholder knows, it is the privilege and right of a company to choose to issue shares of stock. Often, the types of stock that is offered by the company will differ from one another, perhaps in the type of classes that are issued. In order to maintain some degree of consistency with the process, corporations issue what are called authorized shares. Essentially, authorized shares of stock indicate that the number of type of stock that has been issued is within the perimeters of the stock provisions that are contained in the Articles of Incorporation for the company. Here are some basic facts about authorized shares, and why this practice is so important to the health of the stock market. Sometimes referred to as authorized stock, authorized shares may involve any class of stock that is legally issued by the company. All authorized shares must be issued within the guidelines that are provided for at the time the company is incorporated. Typically, it is recommended that a comp
