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what are authorized shares in a corporation well generally a corporation is formed by filing the Articles of Incorporation with a state entity charged with that function generally the Secretary of States office and then the Secretary of States office certifies the existence and issues of Charter or certificate of incorporation now in those Articles of Incorporation the business must State its ownership interest or unit in terms of a number of units or shares that it authorizes this is the number of stock or number of shares of stock that are authorized in the Articles of Incorporation and this is makes up the capitalization of the company when the company issues that stock in exchange for money coming into the business now the word issued means that the authorized shares have been distributed to shareholders that is individuals who are purchasing an ownership in interest all of the shares that are authorized do not have to be distributed particularly in startup Ventures the company o