Also known as capital stock, this represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business, since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a business, which may fluctuate in quantity and value. Equity includes share capital, share premium, and reserves.
Articles in this section
- What is a LEI number?
- On a balance sheet: what is Cash?
- What is stock (Capital or Equity)?
- What are Other Short Term Finances?
- What is overdraft in a balance sheet?
- What are Trade Debtors?
- What are Current Assets?
- What are Fixed Assets?
- What are Intangible Assets?
- What are Tangible Assets?
Please sign in to leave a comment.