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What is the difference between capital stock and share capital?

Capital Stock and Share Capital

 Capital Stock and Share Capital

 

Capital Stock and Share Capital,The terms “capitals stocks” and “share capitals” are often used interchangeably and both refer to the amount of capital that a company has raise through the issuance of shares. However, there can be some subtle differences in how the terms are use in certain contexts.

In general, “capital stocks” is a broader term that can refer to all types of equity securities that a company issues, including both common and prefer shares. It can also encompass additional types of equity instruments, such as stock options and warrants.

On the other hand, “shares capitals” specifically refers to the total amount of money that a company has raise by issuing shares of stock. This can include both common and prefer shares, but typically does not include other equity instruments.

So, while the two terms are relate and can sometimes be use interchangeably, “capital stocks” is a broader term that can include other types of equity securities, while “share capital” specifically refers to the money raise through the issuance of shares.

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