What is share capital?
In GCSE Business, share capital is defined as money raised by a company from the sale of shares. It represents the money invested in a company by its owners, called shareholders.
Only private limited companies and public limited companies can raise share capital. Private limited companies sell shares to friends, family or specialist investors, such as business angels. Public limited companies raise large amounts of share capital by selling shares publicly on the stock exchange.
Share Capital Revision Resources to Ace Your Exams
Save My Exams has a great range of resources to explore the topic of share capital further.
Read our GCSE Business sources of finance revision notes, or test your knowledge of sources of finance, including share capital, with our exam questions to improve your grades.
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