Answer Posted / pradeep kaur saini
Every company while getting registered is authorized to
raise specific amount of capital which is called Authorized
Capital.Within its life span,at any time if the company need
to raise the fund then, company may decide a specif amount
to be raised. Then This specific amount is divided into
parts of equal value e.g: 100000=specific amount is divided
into 2000 parts of equal value. this means that company may
issue 2000 shares of Rs 50each to raise an amount of one
lac. such equal parts are called equity share.
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