what do you mean by share capital? state the type of Share capital
Answers
Answer:
Share Capital is defined as the funds raised by the company through issuing shares to the public. In simple words, you can say that share capital is the money invested in a company by the shareholders. It is a long term source of finance through which shareholders gain a share of ownership in the company.
Explanation:
WHAT DO YOU MEAN BY SHARE CAPITAL --- 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. It means the total amount raised by the company in sales of shares.....
STATE THE TYPE OF SHARE CAPITAL --- Share capital is of two types namely, equity share capital and preference share capital. Equity share capital is generated by raising of funds from the investors and preference share capital is obtained by the issuance of preference shares.