which document determines the number of shares in a company? a stock prospectus an annual bill of rights a corporate charter an annual report
Which document determines the number of shares in a company?
Answer:
In a company, the document that determines the number of shares is the corporate charter. The corporate charter, also known as the articles of incorporation, is a legal document that establishes the framework and structure of a corporation. Within the corporate charter, details about the number of authorized shares a company can issue are specified. It outlines the basic information about the company, including its name, purpose, location, capital structure, and the number of shares that can be issued. This document is filed with the state in which the company is incorporating and plays a fundamental role in governing the company’s operations and ownership structure. It sets the foundation for the company’s existence, including important aspects such as the number of shares that can be issued and the rights and privileges associated with each share.