Articles of Incorporation, also known as a corporate charter, are a set of formal documents filed with a government body to legally document the creation of a corporation in the United States.
Authorized shares, or authorized stock, refer to the maximum number of shares that a corporation can issue as stated in its corporate charter. A corporation is not obligated to issue all of its authorized shares.
A corporate charter is a legal document that establishes a corporation's existence and outlines its basic operational structure, rights, and responsibilities. Also known as articles of incorporation, it is filed with the state government and includes key details about the corporation.
Issued and outstanding shares are shares of a corporation that have been authorized in the corporate charter, issued, and are currently held by shareholders. These shares represent the capital invested by the firm's shareholders and owners.
No-par stock is issued without a par value stated in the corporate charter or on the stock certificate. It is also known as no-par-value stock.
Nominal capital, also referred to as authorized share capital, represents the maximum amount of share capital that a company is authorized to issue to shareholders as per its corporate charter.
Nominal share capital, also known as authorized share capital, is the maximum value of shares that a company can legally issue as stated in its corporate charter.
Preemptive rights grant existing shareholders the first opportunity to purchase new shares of stock issued by the corporation, as specified in the corporation's charter.
Unissued stock refers to shares of a corporation's stock authorized in its charter but not yet issued. These shares are displayed on the balance sheet along with shares that are issued and outstanding. Unissued shares do not pay dividends and cannot be voted. They differ from treasury stock, which is issued but not outstanding as it has been reacquired by the corporation.
