# What is “Stated-capital”?

What is Stated Capital? I have found some definitions on the Google, but I have not been able to comprehend it from this definitions. Could somebody explain it to me?

When a company issues shares each has a nominal price, say EUR $1.00$. But of course they may be sold for more (as far as I know, it is forbidden to issue a share and receive an amount less than its nominal value. Afterwards of course, the share of a company may be re-sold for less than its nominal value -but not when it is issued originally).
If it is sold for more, say EUR $1.50$, then the EUR $1.00$ is designated and presented as "Shareholder's Capital" in a specific line in the financial statements (usually the first line of Equity), while the "above par" value, the remaining EUR $0.50$, goes into another Equity line.