Paid Up capital
Welcome to our lesson on finance terms. Today, we will be discussing the concept of paid-up capital. In simple terms, paid-up capital refers to the portion of a company's issued capital that has been fully paid by its shareholders.
Essentially, this means that the shareholders have fulfilled their financial commitment to the company by contributing the full amount of their investment, as stated in the company's prospectus or articles of association.
Paid-up capital is an important indicator of a company's financial health, as it represents the actual funds available for the company to use for its operations and investments.
So, the next time you come across the term paid-up capital, remember that it
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