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Share issue

Share issue

A share issue is when a limited company issues new securities, usually shares, to raise capital.

What is a share issue?

A share issue means that a limited company issues new securities — usually shares. The purpose is normally to raise capital or to change the share capital.

 

Different types of issue

The most common forms are a new share issue (new shares for payment), a bonus issue (raising share capital from the company's own funds without new money) and a non-cash issue (new shares for property). Each issue must be decided in the correct order under the Companies Act and recorded as a share ledger event in the share ledger.

Record share issues
Henrik Kristensen, NVR
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Related terms

New share issue

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

Bonus issue

A bonus issue raises share capital using the company's own funds, without new capital being added.

Non-cash issue

A non-cash issue is a share issue in which the new shares are paid for with property instead of cash.

Share capital

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