Archive about 'Limited Companies'

Issues of Shares and Debentures

When a company issues shares or debentures, one of the following three (3) scenarios might occur:

Issuance AT PAR
Issuance AT A PREMIUM
Issuance AT A DISCOUNT

Scenarios
  Meaning

Issuance AT PAR
A share or debenture of (say) $1 each nominal value would be issued for $1 each.

Issuance AT A PREMIUM
At a premium a price above the share’s nominal value. For example, […]

Terms Used In Relation To Share Capital

Terms used in Relation To Share Capital

Authorised Share Capital

Also call Nominal Capital
This is the total amount of share capital stated in the Memorandum of Association that can be offered for subscription

Issued Capital

This is the part of the authorized capital that has been offered to the public for subscription and has been ACTUALLY allotted to the […]

Long Term Sources Of Funds - Types of Share Capital (Part 2 of 3)

Short- term finance is generally borrowings that repayable within ONE year;
Medium- term finance are those repayable within 2 to 5 years and
Long-term finance repayable after more than 5 years
This 2 nd part article seeks to look at Long term sources of fund which include the following:

Share capital and
Fixed Income Securities

SHARE CAPITAL:
A share is a security […]