Question

write a short note on subscribed capital​

Answer 1

Answer:

Subscribed share capital is that part of issued share capital for which a company has positively received subscription from the investors. In simple words, when a company issues shares to raise fund, it may or may not find the investors for all of its shares.

Answer 2

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Subscribed capital is that part of issued share capital for which company has positively received subscription from the investors. In simple words, when a company issues shares to raise fund, it may or may not find the investors for all of its shares. Thus, the part of issued capital for which company has successfully found the subscribers is known as subscribed capital.

$\green{\bold{\underline{\underline{ADVANTAGES:-}}}}$

No Repayment Requirement

Lower Risk

Bringing in Equity Partners

$\green{\bold{\underline{\underline{DISADVANTAGES:-}}}}$

Ownership Dilution

Higher Cost

Time and Effort

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