Business Terms and Jargon Explained

What is Shares

There are different types of shares. The limited company will be set up with ordinary shares to start with. This can be changed later. The share price is usually 1: this is the nominal value of the shares. The limited company has authorised share capital and issued share capital. The authorised shares are the maximum amount of shares that the limited company can issue. The issued shares are the amount that the company has issued. Not all the authorised shares need to be issued.

For example, if one person owns 100 shares and only 100 shares are issued then that person owns 100% of the company's share capital even if there are 1,000 or 1,000,000 authorised shares.

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Term created / updated 2005-07-16 23:12:15

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