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Share capital is the investment in company from public to earn profit and it can be raised by offering shares to public for purchase.

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10y ago

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What are the advantages of issuing of share?

Raising of capital. Reasons for wanting to raise capital is another topic, though.


What is share and loan capital?

Loan versus Share Capital from the company's perspective, share capital represents a less "onerous" way of raising capital. The company is only liable to pay dividend payments when it can afford to do so. In addition, any such payments usually only equate to 2 - 3% of the market value of the equity per annum. In the case of loan capital, the company would be liable for repayment of the capital and interest at regular set intervals at a rate close to the current prime rate.To the investor on the other hand, share capital usually also represents the preferred option, provided the dividend yield and capital growth (increase in the share price) exceeds any income which would have been received had the capital sum been loaned out instead. This is typically the case with most JSE listed companies.So share capital is clearly the preferred option for raising capital from both the investor and the company's perspective.


What are the advantages and disadvantage of raising capital of a compny?

Perhaps the most significant advantage of raising capital in a company is to fuel the company's growth. Perhaps the most significant disadvantage of raising outside capital is dilution of ownership.


What is nominal 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.


What are the various types of preference share?

1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital

Related Questions

What are the advantages of issuing of share?

Raising of capital. Reasons for wanting to raise capital is another topic, though.


What is capital raising?

Capital raising is the act of obtaining any form of capital in the capital structure, whether debt or equity. References: <a href="http://www.pegasusics.com/capital-raising.php">Capital Raising</a>


What is share and loan capital?

Loan versus Share Capital from the company's perspective, share capital represents a less "onerous" way of raising capital. The company is only liable to pay dividend payments when it can afford to do so. In addition, any such payments usually only equate to 2 - 3% of the market value of the equity per annum. In the case of loan capital, the company would be liable for repayment of the capital and interest at regular set intervals at a rate close to the current prime rate.To the investor on the other hand, share capital usually also represents the preferred option, provided the dividend yield and capital growth (increase in the share price) exceeds any income which would have been received had the capital sum been loaned out instead. This is typically the case with most JSE listed companies.So share capital is clearly the preferred option for raising capital from both the investor and the company's perspective.


What are types of share capital?

Following are different types of share capital. 1 - Preference share capital 2 - Common share capital


Do you use the authorised share capital or issued share capital when getting the dividends declared?

issued share capital


What are the advantages and disadvantage of raising capital of a compny?

Perhaps the most significant advantage of raising capital in a company is to fuel the company's growth. Perhaps the most significant disadvantage of raising outside capital is dilution of ownership.


Difference between issued share capital and equity 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


What are the difference between equity share capital and preference shares capital and examples?

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.


What are the types of preference share?

1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital


What is nominal 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.


What are the various types of preference share?

1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital


What do you meant by prefernce share capital?

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.