Share capital

Share capital refers to the money a company raises by issuing shares to investors. When you buy a share, you own a small part of the company. This capital is essential for funding the business's operations, growth, and investments. There are typically two types of shares: ordinary shares, which usually come with voting rights and dividends, and preference shares, which often offer fixed dividends but less control over company decisions. Share capital represents the financial foundation of a company and reflects its value and ownership structure.