Legal Capital
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 |