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Share Capital

Share Capital Definition

Share Capital refers to the portion of a company's equity that has been obtained by issuing stock and selling it to a shareholder. The amount of share capital increases each time a corporation sells new shares to the public in exchange for cash or other considerations.


Additional meaning of Share Capital:

Share Capital is also called  capital stock in the US and issued capital in the UK. It can be composed of common and preferred shares. The amount of share capital of a certain firm totals only the initial amount for which shares were sold to the original shareholders, differences arising from market price changes do not influence  its value.









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