Dec 19 2011
Type of share capital: We might say that company share capital refers to the amount of a company’s equity that has been gained by trading stock to a shareholder for cash or another item of capital value. The amount of share capital might be changed anytime the holder want. To issue new shares and sell to the the public or to another business partner in exchange for the cash.
We can divide the share capital as:
- Authorized Share Capital – or registered capital is the total amount allowed to issue (or Authorized) to its shareholders.
- Issued Shared Capital – this is the real amount of shares being issued to its shareholders. Issued Shared Capital might be lower than the Authorized Share Capital.
- Subscribed Capital – is a share capital which has been issued (sold) as shares-whether their purchasers (shareholders) have paid for them or not.
- Called up Share Capital – this type of share capital needs to be paid.
- Paid up Share Capital – is the amount of share capital paid by the shareholders.