Answer Posted / anindita

Authorized or Registered Capital: it is the capital, which
is registered with the registrar of the company. It is the
highest limit of which a company can do its business
however, the company can operate its business with the less
amount than the authorized capital which is divided into a
number of shares of certain value each. For instance, a
company may have an authorized capital 100 million rupees
divided into 10 million shares of Rs.10 each Company
generally get their capital authorized much above their
current needs. Issued capital: an mentioned above the
company does not usually operate its business with the
amount as high as authorized capital because it is above it
current requirement . Hence the company do not issue the
whole of authorized capital. The part issued for public
subscription is referred to issued capital. To continue the
above example, out of Rs.100 million authorized capital a
company may issue Rs.50 million divided into 5 million
shares of Rs.10 each for public subscription. This capital
is known as issued capital. Subscribed capital: it is the
amount of capital agreed by the public to contribute in
response to the call of company. If the company enjoys a
good market reputation the capital may be oversubscribed in
this case over subscription will have to be refunded.

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