Issued Share Capital vs. Subscribed Share Capital: What's the Difference?

Issued Share Capital vs. Subscribed Share Capital: An Overview
Share capital raised to the amount of funding a company invested through the sale of shares of stock to public investors. This means the company grants a small ownership stake in the company in exchange for monetary investment. Share capital estimates the main source of equity financing and can be generated through the sale of common or preferred shares.

Common stock is what most people think of when they talk about the stock market. Common, or ordinary, have voting rights and voting rights in major company decisions. Although companies at times pay dividends on common shares, they are not required to pay them.

Preferred shares, also called preference shares, do not entail the same kinds of ownership rights as common shares. However, they include a guaranteed dividend each year that must be paid before any dividends can be distributed to common dividends. In short, although preferred do have preferential rights, they do have a higher claim on company assets.

Although share capital amounts to a dollar amount, it is dictated by the number and selling price of a company's shares. For example, if a company issues 1,000 shares for $25 per share, it costs $25,000 in share capital.

Share capital is only generated by the initial sale of shares by the company to investors. If the investor goes on to trade those shares to a third party, does any profit made on the sale do not contribute to the participating company's share capital.

Issued share capital
Issued shares are the shares sold to and held by investors of a company. These investors can include large institutions or individual retail investors.

Issued share capital is simply the monetary value of the shares of stock a company actually offers for sale to investors. The number of issued shares paid off to the amount of subscribed share capital, though the amount of issued shares can exceed the authorized amount.

Subscribed Share Capital
subscribed shares are shares that investors have invested to buy. These shares are subscribed as part of an initial public offering (IPO).

Underwriters often promises to deliver a certain number of subscribed shares prior to the IPO. The investors are large institutional investors and banks. Subscribed share capital amounts to the monetary value of all the shares for which investors have an interest.

Special Strickets
Share capital can fall into one of several other categories, considering where the company is in the equity-raising process. They include:

Authorized share capital: The maximum amount of share capital a company is allowed to raise is called its authorized capital. though this does not limit the number of shares a company may issue, it does put a ceiling on the total amount of money that can be raised by the sale of those shares.

Called-Up vs. Paid-Up Share Capital: Investments on the Business and Applicable Investors, Companies May Issue Stock to Investors with the Understanding the Investors Will Pay at a Later Time date. Any funds due for shares issued but not fully paid for are called-up share capital. Any funds are repaid for shares are paid up capital.

Other types of capital, such as debt financing or mezzanine financing, are not funded share capital. Debt capital includes financing sources such as lines of credit, business loans, and credit card balances. While mezzanine financing, like share capital, is included under the equity section of the balance sheet, it is not funded share capital.