3. ln nactice, she capital of a company means
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Share capital is the money a company raises by issuing common or preferred stock. The amount of share capital or equity financing a company has can change over time with additional public offerings.
The term share capital can mean slightly different things depending on the context. Accountants have a much narrower definition and their definition rules on the balance sheets of public companies. It means the total amount raised by the company in sales of shares.
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They provide the company with much needed capital to sustain business in exchange of shares or ownership in the company
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