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?


"Stated Capital" is the nominal value (or "par" value) of all the outstanding shares of a company.

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.

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