Sure! Let's break down the term "authorized shares."
Definition:
Authorized shares are the maximum number of shares that a corporation is allowed to issue to investors. This number is set when the company is created and is outlined in its legal documents, called articles of incorporation.
Usage Instructions:
You use "authorized shares" when discussing how many shares a company can sell or give to its owners or investors.
It usually comes up in business, finance, or discussions about how a company is structured.
Example:
Advanced Usage:
In corporate finance, the term is often discussed in relation to other types of shares, like issued shares (the number of shares actually sold to investors) and outstanding shares (the number of shares currently held by shareholders).
Word Variants:
Authorized capital: This refers to the total value of the authorized shares.
Share capital: This is the money that a company raises by issuing shares, which can relate to authorized shares.
Different Meanings:
In a broader context, "authorized" means having permission or approval to do something. For example, someone might be an "authorized representative" if they have permission to act on behalf of someone else.
Synonyms:
Idioms and Phrasal Verbs:
Summary:
"Authorized shares" are an important concept in the world of business and finance, referring to the maximum number of shares a company can sell.