share capital meaning

  "share capital" in a sentence
  Money derived from the sale of shares in a business, and used for carrying it on

noun [U] (BrE)


(Finance )

the money that investors put into a company when they buy shares, which the company uses to continue its activities LOAN CAPITAL

That part of the capital of a company that arises from the issue of shares. Every company must commence with some share capital (a minimum of two shares). The authorized share capital (registered capital or nominal capital) of a company is the total amount of capital it is authorized to raise according to its articles of association. The issued share capital or subscribed share capital is the amount of the authorized capital that shareholders have subscribed. If the shareholders have subscribed the full par value of the share, this will constitute the fully paid share capital. If they have subscribed only a proportion of the issued share capital, this is called the called-up capital. Some capital may be subscribed on application or on allotment or as separate calls. The shares do not become fully paid until the last call has been made.

See also:

reserve capital.

Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time because each time a business sells new shares to the public in exchange for cash, the amount of share capital will increase. Share capital can be composed of both common and preferred shares.



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  1. some companies want to share capital outlay and "know-how".
  2. on one side is listed the capital employed, which usually consists of the issued share capital plus reserves and retained earnings.
  3. some companies want to share capital outlay and " know-how"
  4. the shares represent 24 . 93 per cent of pccw's issued share capital
  5. does this refer to the share capital issued during the basis period

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PC Version