Following are different types of share capital.
1 - Preference share capital
2 - Common 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.
Disadvantage of share capital is that it increases the risk of default which causes the increase in cost of capital.
Equity share is one share from all share capital of company and it is basic non devisable unit of measure of capital of company.
Debit Cash / bankCredit share application accountDebit Share Application accountcredit share capital account
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
The different types of capital are first bifurcated as fixed and working. The types of fixed capital are-Equity Share CapitalPreference Share CapitalLoan CapitalDebenture CapitalCorpusGrantsGuarantee CapitalThe working capital can be calculated as follows-Current Assets - Current Liabilities
1 – preference share capital2 – owners capital3 – Authorized share capital4 – Subscribed and paid up capital etc.
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.
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.
Preference share capital means share capital which have preference over all other kind of share capital in term of profit and clearance at the time of dissolution of business.
Ordinary share capital is that type of share capital which receives share in profit in last or after all other third parties liabilities as well as preference share holders.
This is the sum of money the shareholders pay into which is called the share capital This is the sum of money the shareholders pay into which is called the 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.