Authorized capital stock means the no. of shares and the corresponding monetary par value that a corporation is authorized to issue / sell. The authorization is coming from the SEC or the Corporation giverning body in a country. Subscribed capital stock means that it is the no. of shares and its corresponding monetary par value that has been subscribed into by investors. This is coming from the Authorized capital stock. By being "subscribed", this shares of stocks are deemed to be reserved already to the subscribers. New investors will have to subscribe to the remaining unsubscribed shares of stocks.
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10-07-2007, 11:35
