Share capital of a companyShare Capital means the amount that a company receives towards Share Capital from issue of shares, both Equity Shares and Preference Shares.Share is a unit in which capital of the company is divided. Each share has its nominal value. Holders of these shares are called Shareholders or Members of the company. Capital of a company is divided into units each such unit is termed as Share. For example, in a company total capital of 50,00,000 is divided into 5,00,000 units of 10 each, then each unit of 10 is a share. Thus, in the above case the company will be said to have 5,00,000 shares of 10 each. 10 is known as the nominal value of the share.Type of share
Preference share
Equity share
Classification of share capital1. Authorized or nominal or registered capital2. Issued capital3. Subscribe capital4. Called-up capital5. paid- up share capital6. Reserve capital