Shares: Authorized

Authorized shares define the total "inventory" of equity a company can ever distribute throughout its existence. It is essential to distinguish them from and outstanding shares :

The primary reason companies authorize significantly more shares than they initially issue is . A reserve of unissued authorized shares allows a company to: The Power to Issue Stock - Wake Forest Law Review authorized shares

: The subset of issued shares currently held by investors, excluding any shares repurchased by the company (treasury stock). Authorized shares define the total "inventory" of equity

: The legal limit set by the corporate charter. authorized shares

: The portion of authorized shares that have actually been allocated to founders, investors, or employees.