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Actual num ber of shares offered to the public for subscription is known as _____
- a)Authorised capital
- b)Called up capital
- c)Issued capital
- d)Subscribed capital
Correct answer is option 'C'. Can you explain this answer?
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Actual num ber of shares offered to the public for subscription is kno...
Issued Capital
Issued capital refers to the actual number of shares that a company offers to the public for subscription. When a company seeks to raise funds from the public, it issues shares to the public for subscription. The number of shares that the company offers for subscription is known as issued capital.
Other Capital Terms
There are other terms related to capital that are important to understand:
- Authorised Capital: This is the maximum amount of capital that a company is allowed to issue as per its memorandum of association. It is also known as registered capital or nominal capital.
- Called Up Capital: This is the amount of capital that a company has called up from its shareholders. In other words, it is the amount that the shareholders are required to pay for the shares they have subscribed to.
- Subscribed Capital: This is the amount of capital that the shareholders have actually subscribed to. It may be equal to or less than the issued capital.
Conclusion
In summary, the actual number of shares that a company offers to the public for subscription is known as issued capital. It is an important concept in understanding a company's capital structure and its ability to raise funds from the public.
Issued capital refers to the actual number of shares that a company offers to the public for subscription. When a company seeks to raise funds from the public, it issues shares to the public for subscription. The number of shares that the company offers for subscription is known as issued capital.
Other Capital Terms
There are other terms related to capital that are important to understand:
- Authorised Capital: This is the maximum amount of capital that a company is allowed to issue as per its memorandum of association. It is also known as registered capital or nominal capital.
- Called Up Capital: This is the amount of capital that a company has called up from its shareholders. In other words, it is the amount that the shareholders are required to pay for the shares they have subscribed to.
- Subscribed Capital: This is the amount of capital that the shareholders have actually subscribed to. It may be equal to or less than the issued capital.
Conclusion
In summary, the actual number of shares that a company offers to the public for subscription is known as issued capital. It is an important concept in understanding a company's capital structure and its ability to raise funds from the public.
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Actual num ber of shares offered to the public for subscription is known as _____a)Authorised capitalb)Called up capitalc)Issued capitald)Subscribed capitalCorrect answer is option 'C'. Can you explain this answer?
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