Authorised capital
The authorised capital of a company sometimes referred to as the authorised share capital, registered capital or nominal capital, (particularly in the United States) is the maximum amount of share capital that the company is authorised by its constitutional documents to issue (allocate) to shareholders. Part of the authorised capital can (and frequently does) remain unissued. The authorised capital can be changed with shareholders' approval. The part of the authorised capital which has been issued to shareholders is referred to as the issued share capital of the company.
The device of the authorised capital is used to limit or control the ability of the directors to issue or allot new shares, which may have consequences in the control of a company or otherwise alter the balance of control between shareholders. Such an issue of shares to new shareholders may also shift the profit distribution balance, for example, if new shares are issued at face value and not at market value.[1]
The requirement for a company to have a set authorised capital was abolished in Australia in 2001, and in the United Kingdom, it was abolished under the Companies Act 2006.[2]
See also
- Issued shares
- Share capital
References
- ^ Henn, Günter; Frodermann, Jürgen; Jannott, Dirk; Becker, Sebastian, eds. (2009). Handbuch des Aktienrechts. C. F. Müller-Wirtschaftsrecht (8., völlig neu bearb. und erw. Aufl ed.). Heidelberg München Landsberg Frechen Hamburg: Müller. ISBN 978-3-8114-4021-0.
- ^ "Companies Act 2006, note 843". Government of the United Kingdom. Retrieved 8 May 2012.
- v
- t
- e
- Primary market
- Secondary market
- Third market
- Fourth market
- Common stock
- Golden share
- Preferred stock
- Restricted stock
- Tracking stock
- Authorised capital
- Issued shares
- Shares outstanding
- Treasury stock
- Exchange
- Over-the-counter (off-exchange)
- Alternative Trading System (ATS)
- Multilateral trading facility (MTF)
- Electronic communication network (ECN)
- Direct market access (DMA)
- Straight-through processing (STP)
- Dark pool (private exchange)
- Crossing network
- Liquidity aggregator
- Alpha
- Arbitrage pricing theory (APT)
- Beta
- Buffett indicator (Cap-to-GDP)
- Book value (BV)
- Capital asset pricing model (CAPM)
- Capital market line (CML)
- Dividend discount model (DDM)
- Dividend yield
- Earnings yield
- EV/EBITDA
- Fed model
- Net asset value (NAV)
- Security characteristic line
- Security market line (SML)
- T-model
and strategies
- Algorithmic trading
- Buy and hold
- Contrarian investing
- Dollar cost averaging
- Efficient-market hypothesis (EMH)
- Fundamental analysis
- Growth stock
- Market timing
- Modern portfolio theory (MPT)
- Momentum investing
- Mosaic theory
- Pairs trade
- Post-modern portfolio theory (PMPT)
- Random walk hypothesis (RMH)
- Sector rotation
- Style investing
- Swing trading
- Technical analysis
- Trend following
- Value averaging
- Value investing
- Bid–ask spread
- Block trade
- Cross listing
- Dividend
- Dual-listed company
- DuPont analysis
- Efficient frontier
- Financial law
- Flight-to-quality
- Government bond
- Greenspan put
- Haircut
- Initial public offering (IPO)
- Long
- Mandatory offer
- Margin
- Market anomaly
- Market capitalization
- Market depth
- Market manipulation
- Market trend
- Mean reversion
- Momentum
- Open outcry
- Order book
- Position
- Public float
- Public offering
- Rally
- Returns-based style analysis
- Reverse stock split
- Share repurchase
- Short selling
- Slippage
- Speculation
- Squeeze-out
- Stock dilution
- Stock exchange
- Stock market index
- Stock split
- Stock swap
- Trade
- Tender offer
- Uptick rule
- Volatility
- Voting interest
- Yield
This finance-related article is a stub. You can help Wikipedia by expanding it. |
- v
- t
- e