- share capital- money put into a business when shares were originally issued
this isnt the same as what shares are currently worth
shares traded on the stock exchange are second hand.
firms can raise new capital by issuing new shares; eg rights issue where an existing shareholder is offered a new share at a reduced price
- retained profit and reserves
this shows all profit made overr the years that it decided to retain instead of paying out.
retain profits finance future investment or protect firms against future problems.
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