What is Share Capital?
A definition of Share Capital
“Share capital refers to the funds a company raises by issuing shares to investors. It represents the equity investment by shareholders who own a part of the company and provides initial capital for business operations.”
Business Glossary > What is Share Capital?
Examples of Share Capital in a Sentence:
Many startups seek to increase their share capital to fund growth.
The company’s share capital increased after the IPO.
Investors contributed significantly to the firm’s share capital.
Why is Share Capital Important in Business?
Understanding share capital is crucial for businesses as it reflects the financial resources available for expansion and operations. It affects governance, investor control, and the company’s ability to raise further funds.
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Associated Terms
Here are some associated business terms and synonyms for “Share Capital”:
- Equity Capital
- Issued Capital
- Paid-up Capital
Apple Inc. Share Capital
Apple Inc. has a substantial share capital following its numerous public offerings, allowing it to finance innovative product development, expand operations, and return value to its shareholders through dividends and buybacks.
Final Notes on Share Capital
When analyzing a company’s share capital, investors should consider its structure and impact on ownership and voting rights. Companies with higher share capital might be more resilient to financial challenges.
This has been a definition of Share Capital meaning.
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