# Authorized shares

> Authorized shares — The number of shares a corporation's certificate of incorporation permits it to issue — the ceiling, not what anyone holds. Issued shares are those actually sold or granted; the authorized shares method of the Delaware franchise tax counts the ceiling.

Source: https://lopifi.com/glossary/authorized-shares
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is authorized shares?** In accounting, authorized shares means the number of shares a corporation's certificate of incorporation permits it to issue — the ceiling, not what anyone holds. Issued shares are those actually sold or granted; the authorized shares method of the Delaware franchise tax counts the ceiling.

## Words this system refuses for it

- issued shares
- outstanding shares
- fully diluted

- **Category:** Entity & compliance
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** authorized-shares-method, delaware-franchise-tax