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Dictionary by pitch.dog
Cap table, ownership & dilution · Working

Authorised shares

Also called: authorized shares, authorized stock

ELI5

The legal maximum number of shares the company can issue without amendment.

Used in conversation

“The financing requires increasing authorised shares.”

Definition

The maximum number of shares a company is permitted to issue under its constitutional documents.

Here “Authorised shares” means: The maximum number of shares a company is permitted to issue under its constitutional documents.

Pitch context

You will see “Authorised shares” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.

Why it matters: In cap table, ownership & dilution, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 8

Direct term-level sources and supporting source families.