Authorized Shares v. Issued Shares
VC Ready Blog
APRIL 30, 2010
The terms “authorized shares” (or “authorized capital”) and “issued shares” are often confused, but the distinction is very important. Authorized shares refers to the number of shares of stock the corporation’s charter permits the corporation to issue. Issued shares refers to shares the corporation has actually sold or granted to someone. Why don’t corporations simply authorize billions of shares when incorporated?