Authorized capital is the highest valued amount of securities a company can issue to shareholders without violating the law. 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 is the maximum number of shares that the board of directors is "authorized", or allowed to issue. Stock certificates represent a shareholder's ownership in a corporation, as a way for investors maintain and prove their ownership of stock. Profit corporation must issue (sell) shares of stock in order to provide the corporation with its own capital, separate from its owners' money. (5) "Voting share" means a share of capital stock of a corporation that entitles the holder of the share to vote generally in the election of directors. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. Outstanding shares are shares of stock that have been issued. In the event of any liquidation, dissolution or winding up of the corporation, or any reduction or decrease of its capital stock resulting in a distribution of.

Capital Stock Vs Authorized Capital Stock In Houston

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