Equity Investing
Authorised Shares
Definition
What is Authorised Shares?
The maximum number of shares a company is legally permitted to issue under its governing documents.
Example in practice
How This Looks in Practice
Shareholders approve an increase in authorised shares before a new capital raise.
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Related Terms
Equity Investing
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.