What is the issued share capital?
The registered capital issued is the value of capital that the company has sold out to its investors on shares. Investors in the company may not have made a payment on stocks yet, but the company can calculate the value of what has been sold. This amount can only be a part of the amount of capital trying to acquire, which is represented by an authorized share capital. When calculating the issued share capital, all market changes in the value of the issued shares cannot be considered after its sale.
Many companies increase capital used to operate their business by issuing shares to investors who can receive rewards for their investments if the company succeeds. This sales of shares can go through the open market to ordinary shareholders or can be sold to preferred shareholders, such as the company's founders or private investors. The number of shares issued as far as the capital it has acquired, or Will Raisjakmile is collected, the registered capital is issued.
It is important to realize that in terms of issued share capital, this is an essential part of the balance sheet, so it is represented in terms of capital. Imagine, for example, that the company has sold 100 shares of its shares for $ 10 (USD) per share. The amount of capital issued in this case is 100 multiplied by $ 10, ie $ 1,000. This is how much money the company can require from the sale of these shares.
If shares appreciate or depreciate value in the open market, it has no impact on the total number of issued capital issued. With the above example, imagine that after investors bought shares, the stock price increased to $ 15 per share. Although the total value of these 100 shares held to investors has now increased to $ 1,500, the company will increase only CZK 1,000 initial sales of shares. The surplus belongs to investors, not companies.
The company whoRá issues shares of shares, always has the maximum amount of shares that is willing to sell. The money obtained, if all these shares are sold, are known as an authorized registered capital. This represents the total amount that the company ideally wishes to increase for its operations. The issued registered capital represents any part of the legitimate capital already obtained from the shares sold.