Authorized stock is the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. "Authorized shares" refers to the number of shares the corporation is allowed to issue under its certificate or articles of incorporation.Outstanding shares are shares of stock that have been issued. Authorized shares, or authorized stock, are simply a legally allowed maximum number of shares that a company can issue to investors. Authorized stock refers to the maximum number of shares a company is legally permitted to issue, as outlined in its corporate charter. Every state demands that you supply three basic facts about your business: its corporate name, its registered agent and the number of authorized shares. What are Shares of Stock and how are they used? Authorizing new shares is the first step; issuing authorized shares can dilute earnings, etc. Earnings per authorized share is meaningless. The standard is 10 million shares as authorized shares in the certificate of incorporation.