Very often we get questions from clients regarding “authorized” – “issued” – and “outstanding” shares and what the terms mean in the context of corporations and raising money. Below is a quick explanation of the terms; thanks for reading.
Authorized Shares means the total (read, total ever that could be) shares a Corporation can create or “cut itself into.” If you imagine a pizza, Authorized Shares are like the total number of slices the pizza will ever be cut up into. There is
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