A:

Subscribed share capital, which is what investors have expressed an interest in, is very different from issued share capital, which is the actual issued stock.

Share capital refers to the amount of funding a company raises through the sale of shares of stock to public investors. Share capital constitutes the main source of equity financing and can be generated through the sale of common or preferred shares.

Though share capital refers to a dollar amount, it is dictated by the number and selling price of a company's shares. For example, if a company issues 1,000 shares for $25 per share, it generates $25,000 in share capital. Share capital falls into one of several categories, depending on where the company is in the equity-raising process. They include:

Authorized Share Capital: The maximum amount of share capital a company is allowed to raise is called its authorized capital. Though this does not limit the number of shares a company may issue, it does put a ceiling on the total amount of money that can be raise by the sale of those shares.

Subscribed Share Capital: When a company prepares to "go public" by issuing stock for the first time, investors can submit an application expressing their desire to participate. Subscribed share capital refers to the monetary value of all the shares for which investors have expressed an interest.

Issued Share Capital: Issued share capital is simply the monetary value of the shares of stock a company actually offers for sale to investors. The number of issued shares generally corresponds to the amount of subscribed share capital, though neither amount can exceed the authorized amount.

Called-Up Vs. Paid-Up Share Capital: Depending on the business and applicable regulations, companies may issue stock to investors with the understanding the investors will pay at a later date. Any funds due for shares issued but not fully paid for are called-up share capital. Any funds remitted for shares are considered paid-up capital.

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