What is AUTHORIZED CAPITAL?

The maximum number of shares of COMMON STOCK a company is permitted to issue, per the terms of its ARTICLES OF INCORPORATION. Issuance in excess of authorized capital requires an amendment to the articles.

More On This Topic
  1. States With The Death Penalty
  2. Difference Between Capital Murder & First-Degree Murder
  3. How To Reduce Capital Gains Tax In Canada
  4. How to Update Federal Tax Tables
  5. Do I Have to Pay Taxes on Capital Gains If I Trade Stocks in the U.S.?
  6. What Does Fed OASDI/EE Mean on a Paycheck?
  7. Where Do You Report Stock Loss On An Income Tax Return
  8. How To Find A Name & Address Using A License Plate Number
  9. How To Get A Copy Of Divorce Papers From California
  10. How To Calculate Corporate Tax Liability

Related Legal Terms
AUTHORIZED SHARE CAPITAL, CAPITAL STOCK, SHARES AUTHORIZED, EQUITY CAPITAL, CAPITAL REORGANIZATION, CAPITAL EMPLOYED, CAPITAL SURPLUS, COMPLEX CAPITAL STRUCTURE, ECONOMIC CAPITAL, CAPITAL MARKET THEORIES


Link to This Definition
Did you find this definition of AUTHORIZED CAPITAL helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary