Authorized Shares
Authorized Shares are the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.
Benefits
Authorized shares give a company the ability to raise money or give stock options to employees.
Frequently Asked Questions
What does authorized shares of a company mean?
Authorized shares of a company are the maximum number of shares that it can issue to investors or use for business purposes like fundraising or employee incentives.
What is cap table software?
Cap table software is a tool that helps businesses keep track of who owns how much of the company, including stocks, options, grants etc.
Is ESOP a software or tool?
ESOP isn`t software or a tool. It`s a way for employees to own a piece of the company through stock options.
Key Takeaway
In conclusion, authorized shares set the maximum amount of shares a company can offer to investors or use for business needs like funding or rewarding employees.