Share capital: share capital means a
particular amount of money with which a
business is started.
Share capital of the company is the capital
contributed by the shareholders.
This is the real capital of the company.
company need finances for business activities.
finances raised by issuing shares, share capital
Ordinary shares
Preference shares
Redeemable preference shares
Ordinary shares
Issue to general public
Provides right to share in profit (dividend)
Provides right to vote
Provides right to attend meetings
Preference shares
Issue to specific parties
Provides a specific fixed dividend
Payment is made before interest or ordinary dividend
Have no voting right
Redeemable preference shares
Company can redeem at any time
Authorized (nominal) capital
Issued capital
Subscribed capital
Paid up capital
Fully paid up capital
This is the maximum amount of capital which
a company can issue according to its
memorandum. It is also referred to, at times,
as registered capital. It is the total of the
share capital which a limited company is
allowed (authorized) to issue. Maximum
amount of capital, can be issued
10000 SHARES @ Rs. 10  100000
Share authorized = Shares issued + shares unissued
• That part of amount of authorized capital
which is offered by directors or
promoters for subscription.
• The part of amount of issued capital which
is taken by the people.
• Amount of capital issued to general public
Paid up capital
• That part of subscribed capital against
which money has been received.
Received full nominal value of the share
With the application for shares
Types of share and share capital

Types of share and share capital

  • 3.
    Share capital: sharecapital means a particular amount of money with which a business is started. Share capital of the company is the capital contributed by the shareholders. This is the real capital of the company. company need finances for business activities. finances raised by issuing shares, share capital
  • 4.
  • 5.
    Ordinary shares Issue togeneral public Provides right to share in profit (dividend) Provides right to vote Provides right to attend meetings Preference shares Issue to specific parties Provides a specific fixed dividend Payment is made before interest or ordinary dividend Have no voting right Redeemable preference shares Company can redeem at any time
  • 6.
    Authorized (nominal) capital Issuedcapital Subscribed capital Paid up capital Fully paid up capital
  • 7.
    This is themaximum amount of capital which a company can issue according to its memorandum. It is also referred to, at times, as registered capital. It is the total of the share capital which a limited company is allowed (authorized) to issue. Maximum amount of capital, can be issued 10000 SHARES @ Rs. 10  100000 Share authorized = Shares issued + shares unissued
  • 8.
    • That partof amount of authorized capital which is offered by directors or promoters for subscription.
  • 9.
    • The partof amount of issued capital which is taken by the people. • Amount of capital issued to general public Paid up capital • That part of subscribed capital against which money has been received.
  • 10.
    Received full nominalvalue of the share With the application for shares