When a company issues shares at a premium (for example, a share of face value ₹10 issued at ₹12, i.e., ₹2 premium), the extra amount collected is credited to the Securities Premium Reserve Account.
Share Capital is the amount of money a company raises by issuing shares to the public (shareholders). It represents the ownership money invested in the company by shareholders.
A share is a unit of ownership in a company. If you buy shares, you become a shareholder and get rights like receiving dividends and voting in company matters.
Imagine a large company as a giant pie. A “share” is a single slice of that pie. When you purchase a share, you are buying a defined fraction of ownership in that company. This ownership status, known as being a shareholder, comes with specific privileges. These can include a potential claim on a portion of the company’s profits and a voice in major company decisions.
When a company issues shares at a premium (for example, a share of face value ₹10 issued at ₹12, i.e., ₹2 premium), the extra amount collected is credited to the Securities Premium Reserve Account.
Share Capital is the amount of money a company raises by issuing shares to the public (shareholders). It represents the ownership money invested in the company by shareholders.
A share is a unit of ownership in a company. If you buy shares, you become a shareholder and get rights like receiving dividends and voting in company matters. Imagine a large company as a...
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