The maximum number of shares a corporation is allowed to sell in accordance with its corporate charter are called shares

The maximum number of shares that a corporation is authorized to sell according to its corporate charter is referred to as "authorized shares." This term is crucial as it delineates the upper limit of equity a company can issue to investors.

Authorized shares provide flexibility for companies to raise capital without needing to amend their corporate charter. While a corporation might have a large number of authorized shares, it does not necessarily have to issue them all; in fact, many corporations will issue only a fraction of these shares. The portions of shares that are released to the public or private investors are often categorized into "issued shares" (those that have been sold) and "outstanding shares" (which are those currently held by shareholders).

Understanding the relationship between authorized, issued, and outstanding shares is fundamental for both investors and company management, as it impacts stock prices, shareholder equity, and overall corporate strategy.