What is meant by share in context of share capital of a company?
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What is Share Capital
Share capital consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock. The amount of share capital or equity financing a company has can change over time. A company that wishes to raise more equity can obtain authorization to issue and sell additional shares, thereby increasing its share capital.
Share Capital
BREAKING DOWN Share Capital
With share capital, the amount a company reports on its balance sheet only accounts for the total amount initially paid by shareholders. If those shareholders later resell their shares on the secondary market, any difference between the initial and subsequent sales prices does not impact the company's share capital.
Share capital consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock. The amount of share capital or equity financing a company has can change over time. A company that wishes to raise more equity can obtain authorization to issue and sell additional shares, thereby increasing its share capital.
Share Capital
BREAKING DOWN Share Capital
With share capital, the amount a company reports on its balance sheet only accounts for the total amount initially paid by shareholders. If those shareholders later resell their shares on the secondary market, any difference between the initial and subsequent sales prices does not impact the company's share capital.
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