How Do You Spell AUTHORIZED SHARE?
Pronunciation: [ˈɔːθəɹˌa͡ɪzd ʃˈe͡ə] (IPA) 
Pronunciation: [ˈɔːθəɹˌa͡ɪzd ʃˈe͡ə] (IPA)
The term "authorized share" refers to the maximum number of shares that a company is legally permitted to issue to shareholders. It signifies the total number of shares available for distribution to investors or individuals who wish to become owners or shareholders of a company. The authorized share count is typically stated in the company's articles of incorporation or charter.
These authorized shares are a predetermined limit set by the company during its initial stage of incorporation, and it represents the total ownership stake that the company can allocate. The authorized share count can be either fixed or expressed as a range. For example, a company may authorize 1,000,000 shares or a range like 500,000 to 1,000,000 shares.
It is crucial to note that authorized shares are not necessarily equal to the issued or outstanding shares. Issued shares are the actual number of shares that have been distributed or sold to investors, whereas outstanding shares are the issued shares that are still in the hands of shareholders.
The concept of authorized shares plays a significant role in various corporate activities such as raising capital, issuing employee stock options, or conducting mergers and acquisitions. Any increase or decrease in the authorized share count requires formal approval from the company's board of directors and sometimes from the shareholders, depending on the jurisdiction and company bylaws.
The word "authorized share" does not have a distinctive etymology as it is a combination of two commonly used English words: "authorized" and "share". However, we can analyze the origins of each word:
1. Authorized: The term "authorized" comes from the Middle English word "authorizen" which means "to give formal approval" or "to grant authority". It evolved from the Old English word "āþorisiān" which means "to give authorization". The word ultimately derives from the Latin word "auctorizare" which means "to confirm or warrant".
2. Share: The word "share" comes from the Old English word "scearu" which translates to "a part or portion". It has Germanic roots and is related to the Old High German word "scaro" meaning "a piece or part".
