Fully paid shares means that the amount of which shares are fully paid by the investors while shares issued at discount means, share are issued at discounted price from actual face value of asset.
Authorized stock has not necessarily been issued. The incorporating state authorizes the corporation to issue a certain number of shares of stock. All shares of a company are authorized... not all are issued.
When shares are issued at value which is more than face value then it is called shares issued at premium.
types of bonus shares
Shareholders are investors that hold shares in the company. Investors are the investing public of which some own shares in the company.
Forefiture of shares issued at par:-Share capital A/c Dr.To share allotment A/cTo Share Call A/cTo share forfeiture A/c(Forfeiture of shares issued at par)
10%
Issued shares(I) are shares of stock that have been sold to investors. It includes both outstanding shares(O) and Treasury shares(T). Thus, I = O+T Outstanding shares(O) are shares of stock currently owned by the shareholders.
Authorized stock has not necessarily been issued. The incorporating state authorizes the corporation to issue a certain number of shares of stock. All shares of a company are authorized... not all are issued.
Sweat shares are equity shares issued by a company to employees or directors at a discount. It can also be a reward for an individual's contribution to a project.
If a share has a nominal face value of say $10.00 then if issued at less than $10.00, is said to issued at a discount If issued at $10.00, then issued at par. If issued at more than $10.00 is issued at a premium.
Issued Shares: The number of shares that has ever been sold to and held by the shareholders of a company. Includes stock that has been repurchased by the company. Does NOT include shares that have been retired.Outstanding Shares: Stock currently held by investors. Does NOT include stock that has been repurchased by the company..If either no shares have ever been repurchased or if all repurchased shares have been retired then Outstanding shares = Issued Shares.
An allotment of shares is the process in which a person is given the right to be included in the register of members within a specific company. An issuance of shares is when the person is actually issued the shares in which they are deemed entitled to.
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
Total equity and common equity are separate things where there is preference shares are also issued in that case only shares issued to common share holders are included in common equity while in total equity shares issued to preference shareholders are also included.
Issue of shares at discountA company may issue shares at a discount i.e at a value below its par value. The following conditions must be satisfied in connection with the issue of shares at a discount :-The shares must be of a class already issuedIssue of the shares at discount must be authorised by resolution passed in the general meeting of company and sanctioned by the company law board.The resolution must also specify the maximum rate of discount at which the shares are to be issuedNot less than one year has elapsed from the date on which the company was entitled to commence the business.The shares to be issued at discount must issued within 2 months after the date on which issue is sanctioned by the company law board or within extended as may be allowed by the Company Law Board.The discount must not exceed 10 percent unless the Company Law Board is of the opinion that the higher percentage of discount may be allowed in special circumstances of case.
This is done, usually, only by the company that issued the shares.
Issuance of shares at a premium occurs when shares are sold for more than their nominal or par value, reflecting higher demand or company valuation. In contrast, issuance at a discount means shares are sold for less than their nominal value, often to attract investors during challenging times or when the company's market perception is low. Issuing shares at a premium typically enhances the company's equity, while issuing at a discount can dilute existing shareholders' value and may signal financial distress.