The Pros And Cons Of Share Capital

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The company self-employed must have economic resources, called the fund, or another capital company. The owners of capital to lend these funds for permanent or temporary use, which is used to finance economic activity. The main criterion for the distribution of equity ownership criterion is associated with the source of their origin, which divides them into capital (funds) and foreign. This is information, from whom it has received economic measures.
Capital (funds) are enterprise funds contributed by the owners permanently and resources available for the same company in the course of its business. Equity capital is essential, because without it, the company is not able to raise debt capital, as the donor of the capital in order to reduce the risk of their own security in the capital demanding owners. Funds (equity) foreign funds entrusted to it by the creditors at a specific time. In the case of joint stock companies in the equity capital can be distinguished entrusted, hereinafter referred to as share capital and the share of self-financing, which consists of capital, reserves and other [2]. The share capital can be achieved through the issue of ordinary shares and preference shares.
Ordinary share is a security in favor of the participation of the owner of a company limited by shares, be entitled to receive dividends and the right to vote by participating in an important meeting of shareholders and giving it priority right to acquire new shares. Shares may be registered

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