Definition

Authorized stock

Authorized stock refers to the amount of stock that a corporation is authorized to sell as indicated in its charter. The total amount of authorized stock at the time of incorporation normally anticipates both initial and subsequent capital needs. As a result, the number of shares authorized generally exceeds the number initially sold. If it sells all authorized stock, a corporation must obtain consent of the state to amend its charter before it can issue additional shares.

Share it:  Cite

More from this Section

  • Administrative expenses
    Administrative expenses (sometimes called general expenses) are those expenses which are ...
  • Authorized stock
    Authorized stock refers to the amount of stock that a corporation is authorized to sell ...
  • Indirect labor
    Indirect labor refers to the work of factory employees that has no physical association ...
  • Accounting information system
    Accounting information system is a system that collects and process transaction data and ...
  • Ratio
    Ratio is an expression of the mathematical relationship between one quantity and another. ...