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A tradeoff is illustrated by
Authorized Shares
The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.
Articles of Incorporation
The legal documents filed with a state government to officially start a corporation, outlining basic details like the corporation's name, purpose, and stock information.
Shares
Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.
Legal Capital
The portion of a company's equity that cannot legally be distributed to its shareholders and must be maintained as a protective measure for creditors.
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