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Shares Authorized

Shares Authorized Definition

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.

Shares authorized = Shares issued + Shares unissued

Shares issued = Shares outstanding + Treasury stock


Additional meaning of Shares Authorized:
A company usually authorizes a higher number of shares than required to be able to issue stock in the future.


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