It is beneficial for a company to have share capital because it is an alternative source to finance expansion projects. Money gained from share capital can also be used to buy new machinery for the company.
banter
It increase liquidity.
Raising of capital. Reasons for wanting to raise capital is another topic, though.
Some of the advantages of the preference share is the absence of the fixed regular income and less capital loses. Some of the disadvantages includes the dilution of claim over assets and the high rate of dividends.
Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.
banter
the advantages are easy, go die !
It increase liquidity.
Share capital is cheap source of capital as it requires to be paid in last after payment of all other liabilities as well.
Raising of capital. Reasons for wanting to raise capital is another topic, though.
Some of the advantages of the preference share is the absence of the fixed regular income and less capital loses. Some of the disadvantages includes the dilution of claim over assets and the high rate of dividends.
Following are different types of share capital. 1 - Preference share capital 2 - Common share capital
issued share capital
The authorised capital which is issued to the public is known as issued capital equity share capital is one of the class 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.
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
Nominal share capital is like an authorized share capital. The share capital that the company allowed (the maximum amount) to issue as registered capital when the company is incorporated. It can be changed later by the approval of the shareholders.