Startup Terms Glossary
What are Authorized Shares?
Authorized shares are the maximum number of stocks that a startup is authorized to issue to shareholders. This number is generally defined in the operating agreement or articles of organization. The difference between issued and outstanding shares is what the startup keeps in its treasury.
Authorized Shares Examples
Examples of authorized shares include:
- Example 1. Outstanding shares
- Example 2. Restricted shares
- Example 3. Floated shares
- Example 4. Unissued shares
Here’s an article about authorized shares and their specifics.