Authorized Shares
Content
Definition
Authorized Shares are the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.
Usage and Context
Authorized shares represent the total amount of shares a company can potentially offer to investors or allocate for various purposes, like raising capital or employee stock options.
Frequently asked questions
- What does authorized shares of a company mean? Authorized shares of a company are the maximum number of shares that it can issue to investors or use for business purposes like fundraising or employee incentives.
- What is cap table software? Cap table software is a tool that helps businesses keep track of who owns how much of the company, including stocks, options, grants etc.
- Is ESOP a software or tool? ESOP isn`t software or a tool. It`s a way for employees to own a piece of the company through stock options.
Benefits
Authorized shares give a company the ability to raise money or give stock options to employees.
Conclusion
In conclusion, authorized shares set the maximum amount of shares a company can offer to investors or use for business needs like funding or rewarding employees.
