Share capital

The totality of ordinary and preferred shares, the main capital of a joint-stock company. It is the authorized capital, since its size is determined by the charter of the company. A.k. also called nominal and authorized capital. A.k. - this is the property of the company, representing the value of the shares issued by it, including preferred and ordinary shares, the initial capital of the joint-stock company. It includes: authorized capital; subscription (mobilized by subscription); paid (paid at the time of subscription). Formally, A.K. is the property of a joint-stock company, that is, a kind of private property, called joint-stock, corporate property. Founders by issuing shares worth; significantly exceeding the real value of the company's assets, diluting capital. The excess constitutes the founder's profit, which forms additional capital of the company. Further growth of A.K. occurs through the capitalization of accumulated profits and through a new issue of shares.