A corporation's charter establishes the number of shares of stock that will be issued in an initial public offering (IPO).

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The very first issuance of a company's stock to the public is called an initial public offering,or IPO;some companies remain private.A corporation's charter indicates the maximum number of shares of stock that the corporation is allowed to issue (also referred to as the number of authorized shares).

A Corporation's Charter Establishes the Number of Shares of Stock