Equity share capital is a form of business capital that entitles investors to a portion of the profits made by a company. It is non-redeemable, which means that the shares do not have to be repaid, unless and until the business is dissolved. The good news is that there are many different kinds of equity shares.
Whether you are planning to start a business from scratch or you are trying to expand an existing one, equity share capital is essential to success. A good way to get the capital you need is to raise a large amount of equity share capital from investors. This type of funding helps a company keep up with its operations and is the best way to ensure a successful future for both parties.
Equity share capital comes in two forms. There is the issue capital and the subscribed capital. The latter is the amount that shareholders have paid to subscribe to a company’s shares. There is also the “called up” capital. This means that some of the shares have already been purchased. Some investors pay their subscriptions in instalments. Alternatively, they can buy partial shares.
In addition to meeting a company’s capital requirements, equity shares can also help investors accumulate wealth. As long as the investor is willing to accept the risk, equity shares can be a great way to get involved in the business world. However, before committing to a larger amount of equity share capital, make sure you understand the risks associated with the investment.
