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Abstract
Equity capital represents ownership capital, equity shareholders collectively own the company. They equity shares appear to be the most romantic. While fixed income investment avenues may more important to most of the investors, equity shares seem to capture their interest the most. The potential rewards and penalties associated with equity shares making them an interesting, even exciting, proposition. The amount of capital that a company can issue as per its memorandum represents the authorized capital. The amount offered by the company to the investors is called the issued capital. That part of the issued capital that has been subscribed to by the investors is called the subscribed capital; the actual amount paid is called the paid up capital. Typically the issued, subscribed, and paid-up capitals are the same. The par value is stated in the memorandum and written on the share scrip.