What are authorized shares of stock?
A. C corporations must indicate the number of shares of stock they wish to authorize (and a par value associated with each share) in the articles of incorporation. The number of authorized shares is the total number of shares available for a C corporation to issue to shareholders; however the C corporation does not need to issue the total number of authorized shares. Some C corporations opt to hold a certain number of un-issued shares in order to add additional owners at a later date or to increase the ownership percentage for a current shareholder. An issued share of stock shows ownership in the C corporation and each shareholder obtains a certificate representing the ownership value of the C corporation. C corporations can alter the number of authorized shares or the par value of shares at anytime in the life of the C corporation by filing an amendment with the state.
A. C corporations must indicate the number of shares of stock they wish to authorize (and a par value associated with each share) in the articles of incorporation. The number of authorized shares is the total number of shares available for a C corporation to issue to shareholders; however the C corporation does not need to issue the total number of authorized shares. Some C corporations opt to hold a certain number of un-issued shares in order to add additional owners at a later date or to increase the ownership percentage for a current shareholder. An issued share of stock shows ownership in the C corporation and each shareholder obtains a certificate representing the ownership value of the C corporation. C corporations can alter the number of authorized shares or the par value of shares at anytime in the life of the C corporation by filing an share amendment with the state.
A. S corporations must indicate the number of shares of stock they wish to authorize (and a par value associated with each share) in the articles of incorporation. The number of authorized shares is the total number of shares available for an S corporation to issue to shareholders; however the S corporation does not need to issue the total number of authorized shares. Some S corporations opt to hold a certain number of un-issued shares in order to add additional owners at a later date or to increase the ownership percentage for a current shareholder. An issued share of stock shows ownership in the S corporation and each shareholder obtains a certificate representing the ownership value of the S corporation. S corporations can alter the number of authorized shares or the par value of shares at anytime in the life of the S corporation by filing an amendment with the state.
A. S corporations must indicate the number of shares of stock they wish to authorize (and a par value associated with each share) in the articles of incorporation. The number of authorized shares is the total number of shares available for an S corporation to issue to shareholders; however the S corporation does not need to issue the total number of authorized shares. Some S corporations opt to hold a certain number of un-issued shares in order to add additional owners at a later date or to increase the ownership percentage for a current shareholder. An issued share of stock shows ownership in the S corporation and each shareholder obtains a certificate representing the ownership value of the S corporation. S corporations can alter the number of authorized shares or the par value of shares at anytime in the life of the S corporation by filing a share amendment with the state.
C corporations must indicate the number of shares of stock they wish to authorize (and a par value associated with each share) in the articles of incorporation. The number of authorized shares is the total number of shares available for a C corporation to issue to shareholders; however the C corporation does not need to issue the total number of authorized shares. Some C corporations opt to hold a certain number of un-issued shares in order to add additional owners at a later date or to increase the ownership percentage for a current shareholder. An issued share of stock shows ownership in the C corporation and each shareholder obtains a certificate representing the ownership value of the C corporation. C corporations can alter the number of authorized shares or the par value of shares at anytime in the life of the C corporation by filing an share amendment with the state. Top of page What is a shares par value? The par value of a share is its minimum stated value. Par value typically