Skip to main content
IPO

Authorised Capital

Equity capital, also known as share capital, refers to the funds that a company raises by issuing shares to its shareholders. This amount is determined by the Memorandum of Association and Articles of Association of the Company, and represents the maximum amount the company can raise through the sale of shares. It is important to note that share premium, which is the excess amount paid by investors for shares, is not included in the definition of authorized capital. This distinction is crucial in understanding the financial structure of a company and its potential for growth.

Related terms

Offer Date

Understand the meaning and definition of Offer Date in the context of stock market, trading, and investments.

MORE
Joint Applications

Understand the meaning and definition of Joint Applications in the context of stock market, trading, and investments.

MORE
Price Range

Understand the meaning and definition of Price Range in the context of stock market, trading, and investments.

MORE
Selling Group

Understand the meaning and definition of Selling Group in the context of stock market, trading, and investments.

MORE
Holding Company

Understand the meaning and definition of Holding Company in the context of stock market, trading, and investments.

MORE
Preferential Shares

Understand the meaning and definition of Preferential Shares in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store