The capital contribution by shareholders which reflects the par value of all equity securities, including common shares and preferred stock. Share capital is usually contributed by a very large base of shareholders, and therefore capital contributions do not have separate identities in accounting, but rather all identities are merged in a capital account known as “share capital account“.
Outside accounting, the price of the stock in excess of par value is considered in the determination of share capital (this reflects the value assigned to an entity’s capitalization by the market).
Share capital come in multiple forms: authorized capital, issued capital, subscribed capital, called-up capital, paid-up capital, uncalled capital, and reserve capital.
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