PPT ON SHARE CAPITAL
BY PRIYANKA BHAYANA
ASSISTANT PROFESSOR , FCBS ,
MRIIRS

SHARES
• It is one of units into which the share capital
of company is dividend

Share capital
• The capital so raised by issue of shares is
called as share capital

Types of share capital
• Authorized Capital
• Issued Capital
• Subscribed Capital
• Called –up- Capital

Types of share capital
• Paid-up capital
• Reserve Capital

AUTHORIZED CAPITAL
• It is the maximum amount of capital that a
company can raise by issue of shares

ISSUED CAPITAL
• It is the portion of authorized capital which is
actually offered to Public for subscription
including the shares allotted to vendors

Subscribed Capital
• They are of three types-
1. Normal subscription
2. Over subscription
3. Under subscription

Called-up capital
• It means the portion of the subscribed capital
which the shareholders are called upon to pay

Reserve Capital
• A portion of unpaid capital which is meant to
be available to the creditors at time of
Liquidation

Meaning of capital Reserve
• The reserve which is created out of capital
profits and is not free for the distribution of
the dividend is called as capital reserve

Sources of capital reserve
• Premium on issue of shares and debentures
• Profit on sale of fixed assets
• Profit earned by company prior to
incorporation