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Finance GlossaryAuthorized Capital
Authorized Capital
Definition of Authorized Capital
Authorized capital or authorized share capital is the maximum amount of capital for which shares can be issued by a company to its shareholders.
Or in other words, authorized capital denotes all the shares across all the categories that a company could issue if it wanted to raise money.
Or in other words, authorized capital denotes all the shares across all the categories that a company could issue if it wanted to raise money.
Related Terms
Par Value
Par value, also known as face value or nominal value, is the stated, fixed amount on a financial instrument (such as a stock or bond) fixed at the time of issuance, the minimum amount for accounting and legal purposes. For bonds, it's the amount repaid at maturity, and used to calculate interest; for stocks, it's the minimum price the company can sell shares for initially. Market price is different from par value.
Abandoned Baby Pattern
An Abandoned Baby Pattern is a type of candlestick pattern that signals the reversal of a bullish or bearish trend. It is made up of three candles, each of which varies based on the trend.
Bullish Abandoned Baby Pattern
- Candle #1: Red in color & forms during a downward trend
- Candle #2: Forms a Doji Star below Candle #1’s closing price
- Candle #3: Leads to a bullish trend & forms above the Doji Star (similar size to Candle #1)
Bearish Abandoned Baby Pattern
- Candle #1: Green in color & forms during an upward trend
- Candle #2: Forms a Doji Star above Candle #1’s closing price
- Candle #3: Leads to a bearish trend & forms below the Doji Star (similar size to Candle #1)
Capped Style Option
Capital is the total amount of money that a trader can use to buy and sell securities. There are variations of the term, the most common one is “starting capital”. This is the amount of money a trader starts their journey with.
Mid-Cap
Mid-Cap companies are those ranked 101 to 250 by market capitalisation in the overall market. They are generally larger and more stable than small-cap companies while still offering higher growth potential than large-cap stocks. Mid-cap stocks often appeal to investors seeking a balance between growth opportunities and risk.
Deferred Tax Liability
A deferred tax liability is line item on a company’s balance sheet that refers to taxes that owed but due in the future. Common examples of deferred tax liabilities include:
- Paying less tax
- Sales in instalments
Negative Correlation
Negative Correlation describes a relationship between two assets where they move in opposite directions. When one increases in value, the other tends to decrease. In finance, it is often used to reduce portfolio risk by combining assets that do not move together. An example is gold and equity market.
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