Capital

Capital The money with which a company runs its business is its capitals, obtained in two ways : by issuing shares, and by borrowing. The maximum amount of capital that a company is allowed to raise is its authorized capital, out of which the maximum it can raise by selling shares is its shares capital. The company may choose to raise the entire share capital in the first instance, or it may choose to raise part of it. The number of shares that a company chooses to sell is its issued capital, all or part of which may be subscribed by shareholders. It than becomes subscribed capital, which is also called paid-up capital.

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