The maximum amount which a company is allowed to raise through the sale of shares is
Answer Details
The maximum amount which a company is allowed to raise through the sale of shares is called authorized capital. Authorized capital is the maximum amount of share capital that a company is authorized to issue to shareholders. It is specified in the company's memorandum of association and can be changed only with the approval of shareholders and regulators. The authorized capital represents the upper limit of the company's equity capital, and it is not necessary for the company to issue all the authorized capital immediately. The company can issue shares up to the authorized capital in one or more tranches over time, depending on its funding requirements.