Meaning and types of Share Capital
Meaning of Share Capital- A company's share capital is the money it raises by issuing common or preferred stock. With additional public offerings, a company's share capital or equity financing may change over time. Depending on the context, the term "share capital" can mean a variety of things. Accountants have a much narrower definition, and it governs the balance sheets of publicly traded companies. It refers to the total amount raised by the company through share sales. Types of Shares Capital- (i) Nominal or Registered or Authorised Capital- The amount of capital with which the company intends to be registered is called registered capital. It is the maximum amount which the company is authorised to raise by way of public subscription. There is no legal limit on the extent of the amount of authorised capital. (ii) Issued Capital- That part of the authorised capital which is offered to the public for subscription is called issued capital. (iii) Subscribed Ca...