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2.3. Corporate Capital
2.3. Corporate Capital
Share Capital (Capital Stock) – the contribution equal to the par or stated value of
the share purchased by owners; or the total contribution by owners in case of no-par
stock.
Share premium (Additional Paid-in Capital) – contribution in excess of the par or
stated value of the share capital.
Subscribed Share Capital – portion of the authorized capital stock that has been
subscribed or contracted but not yet fully paid
Share capital is divided into transferrable shares of stock. A share of stock represents the
interest or right of a shareholder in a corporation and is evidenced by a certificate of
stock. Share capital includes all types of ownership shares in a corporation.
Authorized Share Capital. The number of authorized shares indicates the maximum
number of shares the corporation can issue as specified in the articles of incorporation.
Issued Share Capital. These are shares which have been sold and paid for in full. When
a corporation sells some of its authorized shares, the shares are described as "issued."
The number of issued shares is often considerably less than the number of authorized
shares.
Subscribed Share Capital. It is the portion of the authorized share capital that has been
subscribed but not yet fully paid.
Outstanding Share Capital. These are issued shares, which are in the hands of the
shareholders. The number of outstanding shares will be equal to the difference between
the issued shares and the treasury shares.
Treasury Shares. These are issued shares acquired by the corporation but not retired
and are therefore, awaiting to be reissued at a later date.
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Note:
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