Replies to post #55273 on Houston Natural Resources Corp (HNRC)

[Hotstockguy3]

http://www.investopedia.com/terms/a/authorizedstock.asp

[Hotstockguy3]

One reason an investor might want to know how many authorized shares a company has is to analyze the potential for stock dilution. Dilution reduces a stockholder’s share of ownership and voting power in a company and reduces a stock’s earnings per share when new stock is issued. The larger the difference between the number of authorized shares and the number of outstanding shares, the greater the potential for dilution.