ACCA LW Eng Syllabus E. Capital And The Financing Of Companies - Examine The Different Types Of Capital - Notes 1 / 4
4 Different Types of Capital
Issued/allotted Capital
The nominal value of shares currently issued
Called up Capital
The money the company has asked for re: shares issued
Paid up Capital
The money the company has received for re: shares issued
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:
25% + of the Nominal Value must be received
100% of the Share Premium must be received
Previous
Explain The Controls Over The Names That Companies May Or May Not Use
Syllabus D. The Formation And Constitution Of Business Organisations
D4. The Formation And Constitution Of A Company
Next up
Different Classes of Shares
Syllabus E. Capital And The Financing Of Companies
E1. Share Capital