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  • January 15, 2023
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Authorized Shares

The maximum number of shares of stock (collectively known as capital stock), both preferred and common, that a company is authorized to issue and sell to investors, as stated in its corporate charter (articles of incorporation). The authorized shares consist of two components: issued capital stock and unissued capital stock. The company may choose to issue less than the amount of authorized capital shares for tax purposes or cost considerations.


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