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The authorised capital which is issued to the public is known as issued capital equity share capital is one of the class of capital
The paid up capital = Number of authorised shares x nominal value per share
Equity share is one share from all share capital of company and it is basic non devisable unit of measure of capital of company.
Disadvantage of share capital is that it increases the risk of default which causes the increase in cost of capital.
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
Authorised capital is the maxium amount of share capital the company is allowed to issue whereas issued capital cannot exceed the authorised capital
Authorised shares are not used in earning per share rather paid up share capital or paid up shares are used authorised shares are the maximum number of shares which a company can issue so if authorised and subscribed and paid up capital is same then authorised capital will be used.
issued share capital
No
The authorised capital which is issued to the public is known as issued capital equity share capital is one of the class of capital
A share is a single unit of ownership in a corporation, mutual fund, or any other organization.[1] A joint stock company divides its capital into shares, which are offered for sale to raise capital, termed as issuing shares. Thus, a share is an indivisible unit of capital, expressing the proprietary relationship between the company and the shareholder. The denominated value of a share is its face value: the total capital of a company is divided into a number of shares.· Authorised share capital is also referred to, at times, as registered capital. It is the total of the share capital which a limited company is allowed (authorised) to issue. It presents the upper boundary for the actually issued share capital.· Shares authorised = Shares issued + Shares unissued· Issued share capital is the total of the share capital issued (allocated) to shareholders. This may be less or equal to the authorised capital.· Shares outstanding are those issued shares which are not treasury shares. These are all the shares held by the investors in the company.[2]· Treasury shares are those issued shares which are held by the issuing company itself, the usual result of a buyback.· Shares issued = Shares outstanding + Treasury sharesIssued capital can be subdivided in another way, examining whether it has been paid for by investors:· Subscribed capital is the portion of the issued capital, which has been subscribed by all the investors including the public. This may be less than the issued share capital as there may be capital for which no applications have been received yet ("unsubscribed capital").· Called up share capital is the total amount of issued capital for which the shareholders are required to pay. This may be less than the subscribed capital as the company may ask shareholders to pay by instalments.· Paid up share capital is the amount of share capital paid by the shareholders. This may be less than the called up capital as payments may be in instalments ("calls-in-arrears")
This can also be known as nominal or share capital. It is the amount of funds that are given for use to keep the operation running.
authorised is were you eat porridge whereas issued is where you ride a unicycle and sing cotton eyed joe
1. A company wants to increase capital using equity financing will involve in issuing share capital to public for subscription.
This can also be known as nominal or share capital. It is the amount of funds that are given for use to keep the operation running.
The paid up capital = Number of authorised shares x nominal value per share
Authorized share capital is that maximum amount of share capital a company can do it’s business and return in article of association of company and company cannot raise more capital then this limit unless changes the limit of authorized capital.Issued share capital is that amount of capital which is issued to public for purchase or invest in company.