Authorized Stock/Capital Stock
-The maximum
number of shares that a corporation is legally permitted to issue, as specified
in its articles of incorporation. This figure is usually listed in the capital
accounts section of the balance sheet.
Also known as "authorized shares" or "authorized capital
stock".
This number can be changed only by a vote of all the shareholders. Management will typically keep the number of authorized shares higher than those actually issued. This allows the company to sell more shares if it needs to raise additional funds.
Capital Stock
-The common and preferred stock a company is authorized to issue, according to their corporate charter.
Capital
stock is normally listed on a company's balance sheet.
In financial statement analysis, an increasing capital stock account tends to be a sign of economic health since the company can use the additional proceeds to invest in projects or machinery that will increase corporate profits and/or efficiency.
FINAL RESULTS OF THE AIM GLOBAL REFERENCE DATA AND RISK MANAGEMENT SURVEY 2011 AVAILABLE NOW
