Share capital of a company
Share Capital means the amount that a company receives towards Share Capital from issue of shares, both Equity Shares and Preference Shares.
Share is a unit in which capital of the company is divided. Each share has its nominal value. Holders of these shares are called Shareholders or Members of the company.
Capital of a company is divided into units each such unit is termed as Share. For example, in a company total capital of 50,00,000 is divided into 5,00,000 units of 10 each, then each unit of 10 is a share. Thus, in the above case the company will be said to have 5,00,000 shares of 10 each. 10 is known as the nominal value of the share.
Type of share
- Preference share
- Equity share
Classification of share capital
1. Authorized or nominal or registered capital
2. Issued capital
3. Subscribe capital
4. Called-up capital
5. paid- up share capital
6. Reserve capital
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