Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
Key Takeaways The number of shares issued must be authorized and approved by a company's board of directors (BofD).
You can find the balance sheet in its annual report or in any of its quarterly reports. Locate the stockholders' equity section, which is toward the bottom of the balance sheet. There should be a "common stock" section, which can tell you the number of issued shares as well as the number of authorized shares.
The number of authorized shares can be increased by the shareholders of the company at annual shareholder meetings, provided a majority of the current shareholders vote for the change.
The formula to calculate authorized share capital is to multiply the number of authorized shares by the par value per share. This calculation gives you the nominal capital, combining the quantity of shares a company can issue and their individual value.