share capital thingy
- Created by: rhyLAN
- Created on: 03-02-23 13:36
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- share capital
- external
- long term
- this is capital that comes from a limited company selling shares
- long term
- there are no interest payments. Although dividends are often paid to shareholders, this depends on the success of the business and there is generally no obligation to pay dividends.
- disadvantages
- It dilutes control for the founders – The more shares that are issued, the more shareholders there are who own part of the business. The business is vulnerable to takeover – As a business grows and sells more shares, it becomes vulnerable to the threat of a takeover.
- advantages
- who
- Shares are allotted by company directors and are authorised either by the Articles of Association or a company resolution.
- suitable for
- Private limited companies which are registered with companies house are able to sell, gift or transfer company shares to other individuals. A company share represents a proportion of the business which you own.
- factors that affect this choice
- Dividend per share. Dividend per share indicates the distribution of profit of the firm as compensation for an equity share held by an investor. ...The current market value of the share. ...Dividend growth rate. ...
- external
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