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Share capital

Share capital

Share capital is the capital the shareholders contribute to a company in exchange for shares.

What is share capital?

Share capital is the capital owners contribute to a limited company when it is formed, in exchange for shares. For a private company the minimum is SEK 25,000 (since 2020); for public companies it is SEK 500,000.

 

Quota value and changes

Share capital divided by the number of shares gives a share's quota value. It can be increased through a new share issue, a bonus issue or a non-cash issue, and reduced through a reduction of share capital or cancellation of shares. All such changes are recorded as share ledger events.

Learn more about capital raising
Henrik Kristensen, NVR
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Related terms

Quota value

Quota value is a limited company's share capital divided by the number of shares.

Equity

Equity is the difference between a company's assets and its liabilities.

Share

A share is a unit of ownership in a limited company that gives the right to vote and to receive dividends.

New share issue

A new share issue is when a limited company issues new shares for payment to increase its capital.