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ClueBot NG (talk | contribs) m Reverting possible vandalism by Jazzerbell1111111 to version by Gilliam. False positive? Report it. Thanks, ClueBot NG. (2217611) (Bot) |
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'''Share capital'''<ref>[http://www.intracen.org/tfs/docs/glossary/se.htm Glossary on Trade Financing Terms - S]{{dead link|date=August 2012}}</ref> (or '''[[capital stock]]''' in US English) refers to the portion of a company's [[shareholders' equity|equity]] that has been obtained by trading stock to a shareholder for [[cash]].
In its strict sense, as used in [[accounting]], share capital comprises the nominal values of all shares issued (that is, the sum of their [[par value]]s, as printed on the share certificates). If the allocation price of shares is greater than their par value, e.g. as in a rights issue, the shares are said to be sold at a premium (called ''[[share premium]]'', ''additional paid-in capital'' or ''paid-in capital in excess of par''). Commonly, the share capital is the total of the aforementioned nominal share capital and the premium share capital.
Sometimes shares are allocated in exchange for non-cash, most commonly when company A acquires company B for shares. Here the share capital is increased to the par value of the new shares, and the merger reserve is increased to the balance of the price of company B.
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