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Line 2: A [[corporation]]'s '''share capital'''<ref>[http://www.intracen.org/tfs/docs/glossary/se.htm Glossary on Trade Financing Terms - S] {{webarchive \|url=https://web.archive.org/web/20071028181134/http://www.intracen.org/tfs/docs/glossary/se.htm \|date=October 28, 2007 }}</ref> or '''capital [[stock]]''' (in US English) is the portion of a corporation's [[shareholders' equity\|equity]] that has been obtained by the issue of [[share (finance)\|share]]s in the corporation to a shareholder, usually for [[cash]]. "Share capital" may also denote the number and types of shares that compose a corporation's share structure. In a strict [[accounting]] sense, share capital is the nominal value of [[issued shares]] (that is, the sum of their [[par value]]s, assometimes indicated on share certificates). If the allocation price of shares is greater than their par value, as in a rights issue, the shares are said to be sold at a premium (variously 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. Conversely, when shares are issued below par, they are said to be issued at a discount or part-paid. Sometimes, shares are allocated in exchange for non-cash consideration, most commonly when corporation A acquires corporation B for shares (new shares issued by corporation A). 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 corporation B.

Share capital: Difference between revisions