Authorized Stock (Noun)
Meaning
The maximum number of shares authorized under the terms of a corporation's articles of incorporation.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's authorized stock was set at 10 million shares when it was first incorporated.
- The board of directors decided to increase the authorized stock to 20 million shares to accommodate the upcoming stock split.
- According to the company's articles of incorporation, the authorized stock was 5 million shares, but only 2 million were currently outstanding.
- The maximum number of shares that could be issued was determined by the authorized stock, which was 15 million shares.
- The company's authorized stock was reduced to 8 million shares after the reverse stock split was completed.