Legal Capital

From LinkedAUB Collab
Jump to navigation Jump to search

Description

Equal to the par value or stated value of share capital issued, This amount represents a permanent commitment of capital by the owners of a corporation and cannot be removed without special legal action. Of course, it may be eroded by losses.

Concept Prerequisite

Wikipedia Reference

http://en.wikipedia.org/wiki/Legal capital

Learning Material

Covered in Topic(s)

 
Stockholders Equity: Paid in Capital