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PPT ON SHARE CAPITAL
BY PRIYANKA BHAYANA
ASSISTANT PROFESSOR , FCBS ,
MRIIRS
SHARES
• It is one of units into which the share capital
of company is dividend
Share capital
• The capital so raised by issue of shares is
called as share capital
Types of share capital
• Authorized Capital
• Issued Capital
• Subscribed Capital
• Called –up- Capital
Types of share capital
• Paid-up capital
• Reserve Capital
AUTHORIZED CAPITAL
• It is the maximum amount of capital that a
company can raise by issue of shares
ISSUED CAPITAL
• It is the portion of authorized capital which is
actually offered to Public for subscription
including the shares allotted to vendors
Subscribed Capital
• They are of three types-
1. Normal subscription
2. Over subscription
3. Under subscription
Called-up capital
• It means the portion of the subscribed capital
which the shareholders are called upon to pay
Reserve Capital
• A portion of unpaid capital which is meant to
be available to the creditors at time of
Liquidation
Meaning of capital Reserve
• The reserve which is created out of capital
profits and is not free for the distribution of
the dividend is called as capital reserve
Sources of capital reserve
• Premium on issue of shares and debentures
• Profit on sale of fixed assets
• Profit earned by company prior to
incorporation

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PPT-ON-SHARE-CAPITAL.pptx

  • 1. PPT ON SHARE CAPITAL BY PRIYANKA BHAYANA ASSISTANT PROFESSOR , FCBS , MRIIRS
  • 2. SHARES • It is one of units into which the share capital of company is dividend
  • 3. Share capital • The capital so raised by issue of shares is called as share capital
  • 4. Types of share capital • Authorized Capital • Issued Capital • Subscribed Capital • Called –up- Capital
  • 5. Types of share capital • Paid-up capital • Reserve Capital
  • 6. AUTHORIZED CAPITAL • It is the maximum amount of capital that a company can raise by issue of shares
  • 7. ISSUED CAPITAL • It is the portion of authorized capital which is actually offered to Public for subscription including the shares allotted to vendors
  • 8. Subscribed Capital • They are of three types- 1. Normal subscription 2. Over subscription 3. Under subscription
  • 9. Called-up capital • It means the portion of the subscribed capital which the shareholders are called upon to pay
  • 10. Reserve Capital • A portion of unpaid capital which is meant to be available to the creditors at time of Liquidation
  • 11. Meaning of capital Reserve • The reserve which is created out of capital profits and is not free for the distribution of the dividend is called as capital reserve
  • 12. Sources of capital reserve • Premium on issue of shares and debentures • Profit on sale of fixed assets • Profit earned by company prior to incorporation