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What is issued capital-Nepgyan

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Issuing a portion of the company’s authorized capital to the general public for sale is called Issued capital.

Example:

Suppose the authorized capital of a company is Rs. 80,00,000 while the number of authorized shares is 80,000(80,00,000 divided by Rs.100 each share). Out of these 80,000 shares, the company calls for the sale of 50,000 shares, and that 50,000 shares or (50,000 × Rs.100 = 50,00,000) are called Issued capital.

Any company can sell all or some of its shares to improve its financial condition. Issued capital is also called subscribe capital because the number of shares purchased by shareholders represents the amount invested in the firm.

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