Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
Authorized Shares Of Stock In Minnesota
State:
Multi-State
Control #:
US-0034-CR
Format:
Word;
Rich Text
Instant download
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FAQ
Final answer: The stock that has the same rights and characteristics when all authorized shares are equal is called common stock.
Authorized stock refers to the maximum number of shares a publicly-traded company can issue, as specified in its articles of incorporation or charter. Those shares which have already been issued to the public, known as outstanding shares, make up some portion of a company's authorized stock.
We generally suggest that a start-up initially authorize 10,000-10,000,000 shares of Common Stock (sometimes referred to in other countries as “ordinary shares” or “voting stock”). This amount of Common Stock enables sufficient shares for initial founder grants and for subsequent employee and consultant grants.
The number of authorized shares is specified in the company's articles of incorporation. You can also see the number in the capital accounts section on the balance sheet.