what is authorized stock 
authorized stock or authorized shares refers to the maximum number of shares that a corporation is legally permitted to issue as specified in its articles of incorporation in the u s or in the company s charter in other parts of the world it is also usually listed in the capital accounts section of the balance sheet authorized shares should not be confused with outstanding shares which are the number of shares the corporation has actually issued that are held by the public authorized stock is also known as authorized shares or authorized capital stock understanding authorized stock