Shares authorized is the maximum number of shares that a company can issue. This number is specified in the company's articles of association but can be changed by shareholder approval. A company usually authorizes a higher number of shares than required to be able to issue stock in the future.

Basic formulae

Shares authorized = Shares issued + Shares unissued
Shares issued = [Shares authorized] - Treasury stock

See Also

• Public float

External links

• Investorwords.com
• Investopedia.com
  
  

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