In a Joint Stock Company capital is obtained in the from of shares. The capital of a company is divided into its small units, which are known as Shares. These shares are put for sale to the general public, and the proceeds shares are referred to as shareholders.
Suppose a company wants to invest 100 Million Rupees as capital in the business. The amount may be divided into 10 million units , which become shares and their face price is set at Rs10 Each. These shares will offered for subscription of the public. The received amount against these shares will become capital.
Suppose a company wants to invest 100 Million Rupees as capital in the business. The amount may be divided into 10 million units , which become shares and their face price is set at Rs10 Each. These shares will offered for subscription of the public. The received amount against these shares will become capital.
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