Total Authorized Capital Stock

Total Authorized Capital Stock refers to the aggregate number of shares of capital stock that a corporation is authorized to issue, as established in the corporation's Certificate of Incorporation. When determining percentage ownership of each stockholder in a corporation, it is often recommended to use the Total Authorized Capital Stock as the benchmark instead of the Fully Diluted Capital Stock since it is easier to calculate percentage ownership based on a fixed number (commonly referred to as "locking your cap table").

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