Authorized Share Capital

Authorized Share Capital
The number of stock units that a publicly traded company can issue as stated in its articles of incorporation, or as agreed upon by shareholder vote. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares in the company treasury is to retain a controlling interest in the company.

Also be called "authorized stock," "authorized shares" or "authorized capital stock."

Stock exchanges may require companies to have a minimum amount of authorized share capital as a requirement of being listed on the exchange. For example, the London Stock Exchange requires that a public limited company have at least £50,000 of authorized share capital to be listed. Authorized share capital may be greater than the shares available for trading. The shares that have actually been issued to the public and to the company's employees are known as "outstanding shares."


Investment dictionary. . 2012.

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Look at other dictionaries:

  • authorized share capital — UK US noun [U] (also authorized capital, also UK authorised capital, also authorized shares, also authorized stock) FINANCE ► the largest number of shares that a company can offer for sale at a particular time: »Shareholders approved an increase… …   Financial and business terms

  • authorized share capital — nominal share capital; = nominal capital; = registered capital The maximum amount of share capital that may be issued by a company, as detailed in the company s memorandum of association. The authorized share capital must be disclosed on the face …   Accounting dictionary

  • authorized share capital — nominal share capital; nominal capital; registered capital The maximum amount of share capital that may be issued by a company, as detailed in the company s memorandum of association The authorized share capital must be disclosed on the face of… …   Big dictionary of business and management

  • share capital — That part of the capital of a company received from its owners (i. e. its members or shareholders) in return for shares Every company must commence with some share capital (a minimum of two shares). See authorized share capital; called up share… …   Big dictionary of business and management

  • share capital — That part of the finance of a company received from its owners (i.e. its members or shareholders) in exchange for shares. See also: authorized share capital, called up share capital, issued share capital, paid up share capital …   Accounting dictionary

  • Share Capital/Issued Capital —    Shares that have actually been issued, or allotted, to shareholders. In contrast with authorized share capital, which is the maximum amount of share capital that a company is allowed to issue by its constitution or charter …   Financial and business terms

  • nominal share capital — UK US noun [U] (also nominal capital) ► FINANCE AUTHORIZED SHARE CAPITAL(Cf. ↑authorized share capital) …   Financial and business terms

  • unissued share capital — The excess of the authorized share capital over the issued share capital, i.e. that part of the authorized share capital that has not yet been issued …   Accounting dictionary

  • issued share capital — subscribed share capital The amount of the authorized share capital of a company for which shareholders have subscribed. See also: called up share capital, paid up share capital …   Accounting dictionary

  • issued share capital — subscribed share capital The amount of the authorized share capital of a company for which shareholders have subscribed. See also called up share capital; paid up share capital …   Big dictionary of business and management

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