Authorized Shares

Authorized shares are the maximum number of shares a company's corporate charter permits it to issue, set by the board and shareholders and only changeable by amending that charter. It is a ceiling, not a current count; a company can have far more authorized shares than it has actually issued.

The gap between authorized and outstanding shares is worth watching, since a large unused authorization gives management the ability to issue new shares (diluting existing holders) without needing a separate shareholder vote each time, up to that authorized limit.