Respuesta :
As defined by its corporate charter, authorized stock is the total number of shares that a corporation may issue.
Different from outstanding shares are authorized shares. Shares that have been issued to the company's shareholders are a subset of the authorized stock authorized shares. In most cases, portion of the corporation authorized shares is not issued. By getting the consent of the company's shareholders, the authorized share capital may be altered.
The power of the management to issue new shares is restricted by authorized stock authorized stock. The management will have the corporation unlimited authority to issue more shares in the absence of approved stock, which could alter the shareholders' relative control. If the new shares are issued at a price other than the market value, this share issue could also change how profits are distributed.
Learn more about authorized stock here
https://brainly.com/question/5583697
#SPJ4
