The National Directory of Certified Public Accountants

Ask A CPA - Incorporation Services

What Is The Difference Between Authorized And Issued Shares Of Stock ?

Authorized shares of stock are the amount of stock that a company is approved to issue. Issued shares of stock are stock that has been issued to an entity. An entity may be a person, another business or certain kinds of trusts. Generally, stock must be issued for capitalization in most states.

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