Examine The Different Types Of Capital

NotesQuizPaper examCBE

4 Different Types of Capital

  1. Issued/allotted Capital

    The nominal value of shares currently issued

  2. Called up Capital

    The money the company has asked for re: shares issued

  3. Paid up Capital

    The money the company has received for re: shares issued

  4. Reserve Capital

    Capital only called up on liquidation

Nominal value is the face value (not market value) of the shares

When shares are issued they may be issued at more than the nominal value - we call this the share premium

So shares can be issued partly or fully paid, however the unpaid can be called up at any time

When a plc issues shares:

  1. 25% + of the Nominal Value must be received

  2. 100% of the Share Premium must be received

NotesQuizPaper examCBE