Share Capital ?
Funds raised by issuing shares in return for cash or other considerations. The amount of share capital a company has can change over time.
The amount of share capital will increase each time a business sells new shares to the public in exchange for cash, .
In other terms, this kind of fund raising via share is call equity financing.
The amount of share capital a company reports on its balance sheet only accounts for the initial amount for which the original shareholders purchased the shares from the issuing company.
Any price differences arising from price appreciation/depreciation as a result of transactions in the secondary market are not included.
For example, suppose ABC Bhd raised RM 2 billion from its initial public offering ( IPO ). If market today value the shares at RM 5 billion, the value of the share capital is still only RM 2 billion.
