0
Shares initially sold to an investor and then subsequently repurchased by the issuing corporation. These share are no longer outstanding but remain issued until the corporation cancels them, if it ever does cancel them. Shares issued are not included in the market capitalization calculation.
Wiki User
∙ 11y ago
Wiki User
∙ 9y agoWhen a company needs capital to finance business or run business activities it goes to the public and issues shares to generate the amount from the public. People buy the shares. This is called share issue.
Wiki User
∙ 11y agowhen company needs capital to finance business or run business activities it goes to public and issue shares to generate amount from the public and people contribute the amount in share capital of the company by means of there shares in share capital of company this process is called share issue.
Add your answer:
Earn +20 pts
What is Issue of shares at premium?
Issue of share at premium mean when the share are issue at more than the price of the face value of the share, then it is said to be issue of share at premium. mean: the face value is Rs.10 and the share issue at Rs.12, then the extra Rs.2 is known as the amount of premium...
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
What is the journal entry of Share issue at par?
Debit cash / bankCredit share capital
What is the meaning of issue shares at par?
Issue of shares at par - Shares are said to be issued at par when they are issued at a price equal to the face value. For example if the face value of a share is $100 and issue price is also $100 than the share will be said as thae share has been issued at par.
Is share premium account and share application money same?
Share premium account is that amount in which amount in excess of par value of shares is received while share application accounts records all money received from potential investors in process of share issue.
What is Issue of shares at premium?
Issue of share at premium mean when the share are issue at more than the price of the face value of the share, then it is said to be issue of share at premium. mean: the face value is Rs.10 and the share issue at Rs.12, then the extra Rs.2 is known as the amount of premium...
What are the advantages and disadvantages of share issue?
One of the biggest disadvantages of share issue for a company is that the company become dependent on the public after the issue. An advantage to share issue is that the company becomes more profitable.
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
Share issue journal entry?
Debit cash / bankCredit share capital
Can you use revaluation reserve to issue share capital?
yes, for a bonus issue
What is the journal entry of Share issue at par?
Debit cash / bankCredit share capital
Why issue rights issue of shares at a discount?
when shares aree issued at a lower than the face value they are said to be issue of share at discount. the main reason behind issuing share is to attract retailer
What is the meaning of issue shares at par?
Issue of shares at par - Shares are said to be issued at par when they are issued at a price equal to the face value. For example if the face value of a share is $100 and issue price is also $100 than the share will be said as thae share has been issued at par.
Meaning of share application?
A request for shares in a SHARE ISSUE(=when shares in a company are sold for the first time)
Which companies issue share in discount?
Companies who are in the market from long period of time can issue shares at discount.
Can a private limited company issue share certificates?
no it can't
Can you issue preference share to equity shareholders?
yes it can be issued
