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From Wikipedia, the free encyclopedia

Share capital or issued capital (UK English) or capital stock (US English)[1] refers to the portion of a company's equity that has been obtained (or will be obtained) by trading stock to a shareholder for cash or an equivalent item of capital value. For example, a company can set aside share capital, to exchange for computer servers instead of directly purchasing the servers from existing equity.

The paid-up capital does not speak about the shares.


share capital is the capital which a company gets from the shares. a company issues the shares in the market and company fixes a price for that i.e. the face value of the share but the company calls a little amount of money out of that and company can call the remaining money at the time of the winding up of the company. hence in layman's language, share capital is the capital which a company gets after issuing the shares.

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