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Glossary Term: AUTHORIZED SHARES

Definition(s) for AUTHORIZED SHARES:


1. ) Also called authorized stock or shares authorized, this refers to the the maximum number of shares of stock that a company can issue. This number is specified initially in the firm's charter or articles of incorporation, but it can be altered only with shareholder approval. Generally a much greater number of shares are authorized than required, to give the company flexibility to issue more stock as needed.



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